Computerized method for analyizing innovation interrelationships within and between large patent portfolios

ABSTRACT

The method of the present invention provides a labor and time saving ability to determine interrelationships within patents determined by searching, via a computer system, through patent fields to see if one or more particular pieces of alphanumeric data are common to any of the patents in the database in which the field indicia are located. Such commonality is searchable in backward or forward direction, or both, from, for example, one patent of particular interest. The method allows for presentation of families of interrelated patents within minutes rather than hours, weeks or longer by utilizing computer based technology. Further, the methodology allows for determinations of interrelationships within desired degrees of separation by manipulation of the indicative data to be searched.

This application claims the benefit under 35 U.S.C. 119(e) of U.S.Provisional Patent Application Ser. No. 61/276759 filed Sep. 16, 2009,which is incorporated herein by reference in its entirety and made apart hereof.

BACKGROUND OF THE INVENTION Field of the Invention

The present invention relates to a computerized method for analyzingdesired relationships between patents using information obtained from apatent database. The information is derived from the fields presented inthe database of the Patent Office in publishing the patents andapplications. The present invention also provides for a preferred methodfor presenting the analyzed results in a concise visual format in orderto facilitate the expeditious and sufficient understanding of therelationships between the patents studied; specifically to provide abasis for valuation of the patents studied; and to facilitate thestrategic use, maintenance, licensing and disposition of the patentsstudied.

One of the intended purposes of the U.S. Patent System, and patent lawsgenerally elsewhere, is to facilitate innovation by providing anincentive for the inventor to disclose inventions to the public. Inreturn for the disclosure of an invention, said invention in the U.S.Patent Office must meet the statutory guidelines of being new, usefuland non-obvious. A sovereign government grants the inventor a timelimited monopoly on the making, using, selling or offering for sale, anynew, useful, and non-obvious composition of matter, process, article,plant, or design comprising a patented invention. It is well establishedhow economically valuable a patent can be. Since innovation is a processfacilitated by public disclosure of an invention claimed by a patent, itis also well known how fleeting such a value can be due to subsequentinnovation.

For example, an invention disclosed in a given patent can be quicklysuperseded by subsequent innovations of others with respect to the sameprocess, device, composition, or other patentable subject matter. Suchsubsequent innovation is obtained from other persons based upon acombination of their disclosures with information in the public domainor information in the possession of such other persons who may share asimilar expertise. More specifically, innovation frequently occurs whenthe reader of a published disclosure or patent, incorporates oreliminates one or more of the element(s) of the invention. The inventivetechnology can be determined either by substitution with, or incombination with (i) one or more elements provided in an existing patentor disclosure(s); (ii) with information present in the public domain; or(iii) information already in the reader's possession. In an ideal world,the disclosed technological innovation, the invention, and the ideasupon which the invention(s) is based are, in turn, disclosed, and theinnovation cycle repeats, ad infinitum.

Historically there have been numerous cases where a company's businesshas been detrimentally impacted by the new discoveries and inventions ofcompetitors. For example the transistor's impact on the vacuum tubeindustry in the 20^(th) Century, or more currently the impact of theInternet and world-wide-web on the postal service, newspaperdistributors, and other retail industries in the 21^(st) Century. As theunderlying technology matures, during the life of the patent in which itwas taught, keeping current awareness of the technology encompassed inthe intellectual property relating to it is important, if not criticalto the survival of an entity. Thus, ignoring new technologies in one'sbusiness environment, and how the technology affects a business owningtechnology is a significant risk.

To mitigate this risk, an organization may often believe it needs toamass technology by constantly innovating or acquiring new technology.An ever expanding and broad portfolio of intellectual property relatingto not only new ideas encompassed in the technology but furtherimprovements and developments to its existing technology is vital. Asuseful, as such portfolio growth may be to maintaining control of theunderlying technology in its business, the sheer size of the portfoliomakes it increasingly difficult for the portfolio owner to monitor.Monitoring, in this context comprises not only the current basis,breadth and extent of its own intellectual property, but also theresultant ever-growing relationship(s) of the technology included in theintellectual property of others especially competitors.

It is rather ironic that, as innovation accelerates, as may be gauged bythe increasing numbers of issued patents and patent application filings(the growth of USPTO filings is shown athttp://www.uspto.gov/go/taf/h_counts.htm), further innovation itself isoften stymied by the prior art. For example, the mere possession ofknowledge does not guarantee proper utilization of it. The late, greatauthor and philosopher, Arthur C. Clarke is reputed to have said, “Cavedwellers froze to death on beds of coal. It was all around them, butthey could not see it or use it. Today, we are in danger of making thesame mistakes.”

In the context of the present invention, the problem (of the sheermagnitude of innovation and the consequential information overload intrying to assimilate and utilize the information) can be more concretelyexpressed in two ways:

Issue NQ. 1—On the one hand, this overload problem has beencharacterized as the “If we only knew what THEY know” problem (alsoknown as “other peoples' inventions”). For example, given the sheervolume of patents issued and applications published, the patent systemoften fails in its essential purpose, by making it more difficult andexpensive to review relevant prior art of one's known and unknowncompetitors in a timely and practical manner. This information overloadproblem is overpowering. According to the USPTO website, there were157,283 (utility) patents issued and approximately 456,157 applicationsfiled at the USPTO in calendar year 2007. For comparison, there were157,494 (90,365) (utility) patents issued and approximately 295,926(164,558) applications filed at the USPTO in calendar year 2000. Reviewof each of these disclosures for general relevancy, let alone forspecific content, is difficult if not impossible given the volume of theprior art. If relevant prior art is not reviewable in a timely manner,further innovation is stifled. If the prior art cannot be assimilated bythe specific inventors WHO could and know how to use it, since it isjust as important WHEN they could use it, and the review of theinformation may become impractical or deferred to a time too late toassist them in their inventive endeavors.Issue No. 2—This overload problem also has been characterized as “If weonly knew, what WE know” problem (also known as “our own inventions”).Organizations often compile portfolios of hundreds or thousands ofactive patents and pending applications for both offensive and defensivepurposes in litigation. The inventor is usually a good, if not the bestsource of knowledge about the utilization of the invention contained inthe inventor's patent. An inventor sometimes lacks the means to advisethe rest of the organization, the inventor works in or is associatedwith, on the most effective utilization of the patent. This may be dueto simple time and space logistics (e.g., the inventor is no longer inthe organization, or in the role of reviewing the specific technology atissue. Communication or political issues may contribute to thecommunicative inability (e.g., no one asks for the inventor's input,language issues, or personality conflicts, or the inventor is not ableto communicate well with the others, or the information is notcommunicated in a timely manner)of a organization. Many organizations,including those with the largest patent portfolios, are unable tooptimally integrate and utilize the knowledge contained in their patentportfolio for purpose of deriving current revenue, or spawning futureinnovation. This is especially ironic since the application of commoneconomic theory would seem to imply that the larger organizations arenot only the ones who would be expected to be able to fund and providethe best analysis, but the larger organizations would also be the oneswho would be expected to profit most from such analysis.

A large entity may not be able to efficiently discover, or visualizenon-obvious relationships between its own patents, using the currentprior art methods and tools employed. On the opposite end, a smallentity owning or controlling only a single patent or a relatively smallnumber of patents is confronted with the problem of reviewing acompetitor's large patent portfolio. The small entity may need to reviewnot only the patents of each of the entities controlling larger patentportfolios, but an entire patent database.

To illustrate the problem and the present invention's value of providinga solution to it the following quotes from CEO illustrate such issues.The chief executives of two well known technology companies, HewlettPackard, and Texas Instruments, (each company having a very large patentportfolio), come to mind. The former CEO of Texas Instruments stated,“If only TI knew what TI knows”, Jerry Junkins, former Chairman,President, and CEO of Texas Instruments. “If HP knew what HP knows, itwould be three times more profitable!” said Lewis Platt, Former CEO,Hewlett Packard (as reported by O'Dell & Grayson, 1998, at p. 3, ISBN-100684844745).

In the case of what are sometimes referred to as “patent thickets” inthe literature (Reference is made to the following, “Navigating thePatent Thicket: Cross Licenses, Patent Pools, and Standard-Setting”,Carl Shapiro, University of California at Berkeley March 2001), thefollowing has been noted. The patent thickets are described as “anoverlapping set of patent rights, the scope of which makes itimpractical, using the tools of the prior art, to specifically identify,categorize, understand and unwind such rights requiring that thoseseeking to commercialize new technology obtain licenses from multiplepatentees”. Two distinct issues emerge, namely:

Issue One: External Thickets, which illustrate the problem of notknowing the technology and information of others.

Most common, when a given entity owns or controls a very large number ofpatents (in some cases, hundreds or thousands of patents), it ispossible that such entity itself cannot efficiently discover orvisualize non-obvious relationships of its own patent portfolio orbetween its own patents and the patents of others, given the limitationsof present prior art search methods and tools. In such cases a riskexists, competitors will discover such relationships, and exploit theopportunity to circumvent the existing patents or prevent furtherinnovation on the part of the patent holder.

Issue Two: Internal Thickets the problem of not knowing one's ownknowledge.

Surprisingly, even in the case of a small entity owning or controllingonly one patent or a relatively small number of patents, the problem ofreviewing large patent portfolios presents itself, since such smallentity needs to review not only the patents of its larger competitors,but entities controlling larger portfolios in the same or relatedtechnology, which may include an entire patent database. It is notuncommon for the patentee of a single patent or small set of patents tobelatedly discover to its detriment, one or more non-obviousrelationships between one or more of its own patent(s, or the patents ofothers, using the current prior art methods and tools. The converse isalso true, it is not uncommon for the patentee of a large portfolio ofpatents to belatedly discover to its detriment, one or more non-obviousrelationships between one or more of its own patent(s) and the singlepatent or small set of patents of a competitor or other entity using thecurrent prior art methods and tools. In either case, there is a problemof the analysis of the patents of others, and the analysis of theinterrelationships within and between the patents residing in large setsowned by the same entity.

An organization often tries to understand and analyze the scope of thetechnology contained in the intellectual property of its competitors,and to establish R&D program, or an acquisition strategy based on theresults of such limited analysis, which is often inefficiently, andcostly. However, many excellent (but costly) patent analysis tools havebeen developed over the years, the size of patent portfolios continue togrow, and such analysis requires significant time and human resources tocarry out the detailed analysis.

Another related problem is that often the size and scope of a patentportfolio increases to a point where the patent owner no longer candetermine a commercially viable use for one or more of the patentscontained therein and places the patent(s) in question up for sale,through private sale or auction lot. One well-known venue, for suchauction sales is a company called Ocean Tomo LLC. Such off-loading ofpatents via auction or private sale brings its own set of issues, andrisks for the seller. Among the risks for the SELLER, is how to valuethe patent to set a reasonable RESERVE price, and to whom the auctionlot should be promoted. In the case of the auction or private sale, theBUYER risks are commensurate. The Buyer needs to know how to value thepatent to ascertain a reasonable high BID price, and learn who itslikely competitors for the patent may be. An additional consideration orissue for the Buyer, and perhaps, the most important issue is will theacquisition of the patent in satisfy the strategic objectives thepurchase of the patent is intended to achieve. In each case, whetherauction or private sale, the patents being sold do not exist in avacuum, rather the patent is part of a web of patents in which thepatent resides, it is important to analyze the patent in such a context,which necessarily involves analyzing the patent in a thicket of otherpatents.

Therefore, there is a need for improved tools, methods, and strategiesto analyze patent portfolios. More specifically, there is a need fortools, methods and strategies to analyze patent portfolios comprising avery large numbers of patents. In addition, there is a crucial need fortools, methods, and strategies to analyze the relationship(s) among agiven patent or patents, other patents in the same or relatedtechnology.

One well known prior art method of patent analysis is the graphicalorganization of patented inventions based upon so-called “citationtrees” of the patents of such inventions.

In the “citation tree analysis” method, the cited prior art patents, ofa patent under study [i.e., such patents are presented (“cited”) on theface of the patent under study] is used as a basis of relating or“linking” the patent at issue to prior patents, typically portrayedgenerationally, in chronological order. In this context, a first priorgeneration of a given patent would be the set of all patents cited onthe face of such given patent as its prior art. The second generation(again, looking backwards in time) would be the set of all patents citedon the faces of each of the first prior generation of patents as theirrespective prior art references. This analysis can be carried on throughmany generations. Off-the-shelf commercial embodiments of this prior artcitation tree analysis method are marketed by various companies. Onespecific offering is that offered by Thompson Reuters® and furtherdescribed on the interact at http://www.delphion.com/help/citelink_help.

In one embodiment of the citation tree analysis method, the data isexamined in reverse, thus, a forward citation tree is constructedexamining the patents issued subsequent to the patent under study whichlist the patent under study as cited prior art. In this context, a firstgeneration of a given patent would be the set of all patents whereinthere is cited on the face of such subsequent patents, the patent understudy as the prior art of the subsequent patents. The second generationof a forward citation tree would be the set of all patents issuedsubsequent to the first generation of the patents citing one of thefirst generation patents as prior art, and so forth.

As the prior art teaches, in order to create a (forward or backwardprior art) citation tree, all one needs to do is If compile or otherwiseobtain access to a database of patents that correlating s every patentof interest and the cited references to those patents by subsequentpatents. Preferably, the filing date and issuance date of the patent orpatent application are correlated. Said data is readily available fromthe USPTO or commercial database providers. Once one has access to suchcited references in a database, preferably a relational database, onecan choose to examine the data from different perspectives. A user canlook forward or backward in time relative to the issuance date incombination with or without the filing date of given patent. As long asall respective referential data are available in a chronologicaldirection(s) of interest such analysis can be made.

The described citation tree prior art method of examining a givenpatent's ancestors (looking backward in time, one or more generations)or its descendants (looking forward in time, one or more generations),as the case may be, is straight forward, and is well-known in the priorart and is a practicable method with existing tools. All that isrequired for such an analysis is an examination of information containedon the face of each of the patents or patent application in question anda visual means to represent the interconnections said patent or patentapplication. This presentation is typically illustrated graphically. Apictorial node diagram representation of the data connections of thepatent or patent application of interest is portrayed. The patents arethe nodes, and the interconnections, are the lines linking the patentsin question, to the referential data analyzed.

One major problem with citation tree analysis is it is useful only, whenthe citations are all known. In the case of published applications, noexplicit citations are listed on the face of the published application.The lack of explicit citation information is problematic using the priorart citation methods to ascertain the context of the patent applicationvis-a-vis the universe of all other patents, patent applications, or anysubset thereof. The instant invention presents a method of avoiding thispitfall in the case of a patent application. The present inventionapproximates a relevant citation list from information available priorto issuance of the application as a registered patent, enabling the useof citation tree analysis if desired. Further, the present invention canbe utilized n a large subset of published applications that have notmatured into issued patents.

For some purposes, most notably litigation, and patent prosecution, itis not necessary that a published but later abandoned patent applicationmature into an issued patent. The publication of the application maybear upon the novelty of an invention, and the novelty of othersubsequently claimed inventions.

SHORTCOMINGS IN THE PRIOR ART METHODS, The patent analysis tools andmethods disclosed in the prior art have a number of shortcomings,namely:

The prior art methods and tools do not provide a means of efficientlyassembling, analyzing, and utilizing the prior art. The current methodsfor analyzing the prior and latter patent references are limited indefining the context to other patents in a given database.

The prior art methods and tools do not provide a means of ascertainingthe relationships between and among the patent(s) and pending patentapplications until such time when the pending patent applications matureinto issued patents.

The prior art methods and tools do not provide a means to ascertain thepossibility of infringement competitors' patent or patents.

The prior art methods and tools do not provide an efficient andeffective means of analyzing the costs and benefits of payingmaintenance fees to keep a patent in force to the patent office.

The prior art methods and tools do not provide as efficient andeffective resource for further innovation and the current monetizationof the patents contained in the intellectual property Portfolio of agiven entity.

The prior art methods and tools do not provide an efficient andeffective means of obtaining the identities of inventors who may beuseful in improving the inventions covered in the patents under study.

The prior art methods and toots do not provide an efficient andeffective means of facilitating the establishment of a social network ofinventors for innovation within a particular technological domain,whether or not the members of such group of inventors are known to eachother or not.

The prior art methods and tools do not provide a means to efficientlyascertain a valuation of a given patent being sold at auction or privatesale by a seller (to assist in the setting of a minimum or “reserve”price) or a buyer (to assist in the setting of a maximum bid price) ofthe patent in question.

The prior art methods and tools do not provide a means for a seller of agiven patent being sold at auction or private sale to efficientlyascertain beforehand the context of the web of patents the offeredpatent resides. The current methods of analysis do not provide for theanalysis in a given context especially where an analysis of a thicketpatents is involved. All of the foregoing factors bear upon the price,the audience targeted, and the determination of the potential monies tobe received from the sale outweigh the risks involved in no longermaintaining the defensive protections of the patent being offered forsale, if sold.

The prior art methods and tools do not provide a means for a buyer of agiven patent to efficiently ascertain in the context of said patentbeing sold at auction or private sale to ascertain its likelycompetitors for the patent, and if the purchase of the patent inquestion will satisfy the strategic objectives the purchased patent isintended to achieve.

The prior art methods and tools do not provide a means for a seller orpotential buyer of a given patent being sold at auction to adequatelycorrelate the value of past patent sales to the prospective value of thepatent under study.

The prior art methods and tools do not provide a means for universitytechnology managers to ascertain the scope and context of their patentportfolios. The managers cannot effectively manage their patentportfolio(s) containing the various inventions, and do not help providedirection for their inventors.

The prior art methods and tools do not provide sufficient informationfor university technology managers to monetize their patent portfolios.The previous methods and tools do not identify prospective licensees orbuyers of any or all of their patents.

The prior art methods and tools do not provide sufficient informationfor patent plaintiff litigators to efficiently ascertain potential priorart references that reinforces the documentary evidence of infringement.

The prior art methods and tools do not provide sufficient informationfor patent defense litigators to ascertain prior art references thatrebut the evidence of infringement and shows non-obviousness.

The prior art methods and tools do not provide sufficient informationfor patent investors to explore, discover, review, and targetacquisition targets from the myriad universe of patent portfolios thatmay be available to acquire, said portfolios having synergies with thepatents held by the investors in their own patent portfolios.

The prior art methods and tools do not provide a sufficient informationfor patent investors to efficiently explore, discover, and learn of fromthe myriad universe of patents those patents that may be infringed, orthose patents that are infringing patents held in their own portfolio.

The prior art methods and tools do not provide a sufficient informationto aid corporate technology officers to efficiently perform anddischarge their due diligence activities in connection with a proposedacquisition of an entity owning one or a plurality of patents as part ofa merger or otherwise.

The prior art does not provide sufficient information for human resourceprofessionals to efficiently discover, learn, and determine if newtechnology professionals or staff whether temporary (project) orpermanent should be retained.

The prior art methods and tools do not provide sufficient informationfor patent owners to efficiently ascertain from an economic perspectivethe merits of paying a pending maintenance fee of a U.S. Patentregistered with the USPTO or allowing the patent to be abandoned.

The prior art methods and tools do not provide sufficient informationfor efficiently assembling, analyzing, and utilizing the pertinentpatent references; for a specific patent in the context of otherpatents, which it has a technological relationship, irrespective ofwhether the patent under study is directly cited chronologically by theother patents in question or vice versa (i.e., undirected citationsearches).

It is an object of the present invention to provide sufficientinformation in the context of directed search, to allow for thepresentation of graphical information of the direct citationrelationships between the two patents.

The prior art methods and tools do not provide sufficient informationfor employing citation analysis on published (but unissued) patentapplications, and for which there are no explicit patent or othercitation data furnished on the face of the application in question atthe time of publication, or no Information Disclosure Statement(s) wasfiled with the patent application, or no Office Action has issued at thedate of interest.

The USPTO sponsored a Peer to Patent project described athttp://www.peertopatent.org/. The Peer to Patent project does providecertain prior art as a first approximation of citable art. The Peer toPatent project did not address the consequential problem of publishedapplications cited in an IDS. The Peer to Patent project did not provideanything more than a mechanism to obtain prior art and contribute priorart references amongst its community members. No means of automating theprocess to obtain information of on the prior art of the so-called“community patent review” project(s) was made available

The prior art methods and tools do not provide an efficient andeffective means of discovery of latent or otherwise unobviousrelationships within and between individual patents or individualpatents residing within a large database of patents, either under theownership or control of a single entity, or under the ownership orcontrol of two or more entities, such groups of patents referred to as“patent thickets.”

The prior art methods and tools do not provide patent litigators orpatent examiners at various patent offices, such as the USPTO, anefficient and effective means to obtain information to discover latentor non-obvious relationships between patents, or a patent applicationand a patent, or published and later abandoned patent applications(applications that do not mature into issued patents with citations).

The prior art methods and tools do not provide patent law firms with anefficient and effective means of obtaining information identifyingpotential conflicts of interest regarding the patent prosecution of aparticular application. The prior art methods and tools do not provide ameans to obtain the information to ascertain how valuable the largepatent portfolio of an entity and its competitors may be.

The prior art methods and tools do not provide a means to ascertaininformation on how likely an entity's product is to infringe on acompetitors' patent or patents. The prior art methods and tools do notprovide a means to ascertain sufficient information on whetheracquisition of a patent, patents, or patent application may be used toavoid or correct an infringement situation.

The prior art methods and tools do not provide a means to ascertain theinformation to determine the results of a proposed merger of two or morecompetitors wherein one or more of such competitors owns or controls alarge portfolio of patents.

Thus, there is a need for a better method for patent analysis to obtaininformation with respect to any two patents contained within any twolarge patent portfolios with respect to their technology similarities ifany. There is a need for a method and tool to allow for the systematicand efficient analysis of information with respect to any two patents ora patent and a patent application contained in a large patent portfolioor portfolios sometimes referred to as “patent thickets”.

There is a need for a better method of patent analysis to obtaininformation With respect to a patent database of the technological basisthat is contained within a portfolio of patents for determining a patentthicket.

There is a need to determine and have sufficient information withrespect to prior art for published but unissued, or abandoned patentapplications, where no such information has been provided by theapplicant.

SUMMARY OF THE INVENTION

The instant invention provides a process to obtain sufficientinformation to determine the nexus between any two patents or a patentand a patent application with respect to its inventors, technological,historical, chronological, ownership, citation history, or other desiredconnection points.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows an ancestral citation tree for a single patent, U.S. Pat.No. 5,669,762, looking back two generations.

FIG. 2 shows a citation tree of the progeny for U.S. Pat. No. 5,669,762,looking forward two generations

FIG. 3 shows a citation tree for U.S. Pat. No. 5,669,762 directedforward two generations. The Figure shows all interconnections of the5,669,762 patent to all of LGI's issued US patents, at two degrees ofseparation through all intermediary patents.

FIGS. 4-7 show 9 unique links between U.S. Pat. No. 5,669,762, thepatents of LGI, and a patent thicket comprising the combined patents ofPhilips Electronics, Sony Corporation and Panasonic Corporation, at fourdegrees of separation.

FIG. 8 shows flow charts illustrating the links between the patents ofPhilips Electronics, Sony Corporation, and Panasonic Corporation.

FIG. 9 shows flow charts illustrating the links between the patents ofPhilips Electronics, Sony Corporation, and Panasonic Corporation.

FIGS. 10-30 show flow charts where various determinants were used toillustrate an interaction between two patents in the patent thicketdatabase.

FIGS. 13 and 13A represent more specifically samples of the prior artforward citation analysis.

FIG. 14 is a detailed visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket, in this case ALL of the patents assigned bythe USPTO to the principal Class/Subclass assigned to U.S. Pat. No.6,526,351 (i.e., the “Classmates” of '351) SUCH THAT the links betweenthese thickets TRAVERSE one or more patents contained in a THIRD patentportfolio comprising a single patent (i.e., U.S. Pat. No. 6,526,351) atTWO degrees of OVERALL separation, irrespective of the direction of thelinks (i.e., whether chronologically forward or backward in time).

FIG. 15 is a detailed visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket, in this case ALL of the patents assigned bythe USPTO to ANY of the Class/Subclass of U.S. Pat. No. 6,526,351 (i.e.,the “Schoolmates” of '351) SUCH THAT the links between these thicketsTRAVERSE one or more patents contained in a THIRD patent portfoliocomprising a single patent (i.e., U.S. Pat. No. 6,526,351) at TWOdegrees of OVERALL separation, irrespective of the direction of thelinks (i.e., whether chronologically forward or backward in time).

FIG. 16 is a detailed visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket (i.e., ALL of the patents of record assignedto Google Inc.), SUCH THAT the links between these thickets TRAVERSE oneor more patents contained in a THIRD patent portfolio comprising asingle patent (i.e., U.S. Pat. No. 6,526,351) at FOUR degrees of OVERALLseparation, irrespective of the direction of the links (i.e., whetherchronologically forward or backward in time).

FIG. 17A is a broad visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket, in this case ALL of the patents assigned bythe USPTO to the principal Class/Subclass for U.S. Pat. No. 5,787,449(i.e., the Classmates” of '449) SUCH THAT the links between thesethickets TRAVERSE one or more patents contained in a THIRD patentportfolio comprising a single patent (i.e., U.S. Pat. No. 5,787,449) atFIVE degrees of OVERALL separation, irrespective of the direction of thelinks (i.e., whether chronologically forward or backward in time). Smallworlds are visible in the visualization.

FIG. 17B is a broad overview with a detailed visualization of the firstindicated region of FIG. 17A, above, showing the patents comprising thesmall worlds contained therein.

FIG. 18 is a detailed visualization of the first indicated region ofFIG. 17A, above, showing more specifically the patents comprising thesmall worlds contained therein.

FIG. 19 is a detailed visualization of the second indicated region ofFIG. 17A, above, showing more specifically the patents comprising thesmall worlds contained therein.

FIG. 20 is a broad visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket, in this case ALL of the patents in which theterm “XML” is used in the claims SUCH THAT the links between thesethickets TRAVERSE one or more patents contained in a THIRD patentportfolio comprising a single patent (i.e., U.S. Pat. No. 5,787,449) atTHREE degrees of OVERALL separation, irrespective of the direction ofthe links (i.e., whether chronologically forward or backward in time).Small worlds are visible in the visualization.

FIG. 20A is a detailed visualization of the indicated region of FIG. 20,above, showing more specifically the patents comprising the small worldscontained therein.

FIG. 21 is a broad visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket, in this case ALL of the patents assigned bythe USPTO to the principal Class/Subclass assigned to U.S. Pat. No.6,695,983 (i.e., the “Classmates” of '983) SUCH THAT the links betweenthese thickets TRAVERSE one or more patents contained in a THIRD patentportfolio comprising a single patent (i.e., U.S. Pat. No. 6,695,983) atTWO degrees of OVERALL separation, irrespective of the direction of thelinks (i.e., whether chronologically forward or backward in time). Smallworlds are visible in the visualization.

FIG. 22 is a detailed visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket, in this case the set of all patents (in thiscase 23 such patents) that lie within three degrees of citationseparation (either forward or backwards citations) to U.S. Pat. No.6,695,983 (i.e., the “Closest Friends” of '983) SUCH THAT the linksbetween these thickets TRAVERSE one or more patents contained in a THIRDpatent portfolio comprising a single patent (i.e., U.S. Pat. No.6,695,983) at THREE degrees of OVERALL separation, irrespective of thedirection of the links (i.e., whether chronologically forward orbackward in time).

FIG. 23 is a detailed visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolioseach of which is a thicket, in this case the set of all patents (in thiscase 8,000 such patents) that lie within the US current Classes of eachof the “Closest Friends” of '983, as explored in FIG. 22 (i.e., thePatent Thicket of the Principal Classes of the “Closest Friends” of'983) SUCH THAT the links between these thickets TRAVERSE one or morepatents contained in a THIRD patent portfolio comprising a single patent(i.e., U.S. Pat. No. 6,695,983) at THREE degrees of OVERALL separation,irrespective of the direction of the links (i.e., whetherchronologically forward or backward in time).

FIG. 24 is a broad visualization of an example of patent analysisemploying the present invention to identify potential attorney-clientconflicts of interest, by evaluating two IDENTICAL patent portfolios,each of which is a thicket, in this case ALL of the patents in which agiven attorney (or agent) is of record; IN ORDER THAT the links betweenthese thickets are distinguished, when the Assignee (or Inventor as thecase may be) of Record is not identified as the same entity at ONEdegree of OVERALL separation, irrespective of the direction of the links(i.e., whether chronologically forward or backward in time).

FIG. 25 is a detailed visualization of the indicated region of FIG. 24,above, showing more specifically the patents comprising the patent linksdistinguished therein.

FIG. 26 is a broad visualization of an example of patent analysisemploying the present invention with two IDENTICAL patent portfolios,each of which is a thicket (i.e., all patents of record assigned toINTEL CORP.), SUCH THAT the links between the thickets TRAVERSE a THIRDTHICKET a potential cross-LICENSEE (i.e., comprising all patents ofrecord assigned to RAMBUS INC.), at TWO degrees of OVERALL separation,irrespective of the direction of the links (i.e., whetherchronologically forward or backward in time), showing the complexity ofthe interconnections.

FIG. 27 (using the same data sets as in FIG. 26) is a detailedvisualization of a patent analysis employing the present invention withtwo IDENTICAL patent portfolios each of which is a thicket (i.e., allpatents of record assigned to RAMBUS INC.), SUCH THAT the links betweenthe thickets TRAVERSE a THIRD THICKET a potential cross-LICENSOR (i.e.,comprising all patents of record assigned to INTEL CORP.), at TWOdegrees of OVERALL separation, irrespective of the direction of thelinks (i.e., whether chronologically forward or backward in time),showing the complexity of the interconnections.

FIG. 28 is a detailed visualization of an example of patent analysisemploying the present invention to identify potential intermediarypatents of interest by evaluating two IDENTICAL patent portfolios, eachof which is a thicket, in this case owned or controlled by a so-called“non-practicing entity” or “patent troll” (i.e., some or all of thepatents of record are assigned to ACACIA PATENT HOLDINGS INC.), at TWOdegrees of OVERALL separation between the two thickets or portfolios,irrespective of the direction of the links (i.e., whetherchronologically forward or backward in time).

FIG. 29 is a detailed visualization (using the nineteen memberintermediary patent data set in the example set out in FIG. 28), ofpatent analysis employing the present invention with two IDENTICALpatent portfolios each of which is a thicket ” (i.e., some or all of thepatents of record assigned to ACACIA PATENT HOLDINGS INC.), SUCH THATthe links between the thickets TRAVERSE a THIRD THICKET a potentialLICENSEE or LITIGANT (i.e., comprising all nineteen member intermediarypatents discovered), at THREE degrees of OVERALL separation.

FIG. 30 is a broad overview of the patent analysis employing the presentinvention with two IDENTICAL patent portfolios, each of which is athicket (i.e., comprising a selected set of patents assigned to RPXCORP., a patent infringement insurance company), SUCH THAT the linksbetween the thickets, TRAVERSE a THIRD THICKET, a potentialCLIENT-LICENSEE (i.e., comprising all patents of record assigned toDIGIMARC CORP.), at TWO degrees of OVERALL separation. Small worlds arevisible in the visualization.

FIG. 31 is an illustration of the expanded Social Network Results at two(2) degrees of separation corresponding to the social networkingexplanation as set out in Example 10. More specifically, FIG. 31 is abroad visualization of patent analysis employing the present inventionwith a first patent portfolio comprising a selected set of patentsassigned to SEARETE LLC., and patents of the portfolio comprising allissued US patents to discover and identify citation links between theportfolios at TWO degrees of OVERALL separation, for the purpose ofidentifying potential social network and/or invention session memberswith complimentary skill sets to the relevant patents of SEARETE. Smallworlds are visible in the visualization.

FIG. 32 is a flowchart presenting an overview of a preferred embodimentof the present invention. The process flowchart identifies theprocedures to be performed by employing the present invention. Thepresent invention uses data from a database comprising all publiclyavailable USPTO data to identify the links and intermediary patents ofinterest lying between two patent portfolios, which may be thickets viaa third portfolio

FIG. 33 is a detailed visualization of patent analysis employing thepresent invention with a first patent portfolio comprising selected setof patents assigned to SEARETE LLC., and a second patent portfoliocomprising all issued US patents; to discretely discover and identifycitation links between the portfolios at ONE degree of OVERALLseparation, for the purpose of identifying potential social networksand/or invention session members with complimentary skill sets to therelevant patents of SEARETE. Small worlds are visible in thevisualization.

DESCRIPTION OF THE PREFERRED EMBODIMENT

The preferred embodiment of the present invention has been described;the details of the present invention may be modified without departingfrom the invention, which is defined by the claims.

The discussion and examples of the present invention utilize issued U.S.patents, patent publications and U.S. patent references. Other patentclassification systems may be utilized. The use of cited references,their classification, keyword, assignee(s), inventor(s), attorney orattorneys, addresses, dates, examiner, foreign references, or otherinformation are obtained from the front page of a US patent or patentapplication Can be utilized in the present invention to select anddetermine the appropriate nexus between two patents or a patent andpatent application. The USPTO at(http://patft.uspto.gov/netahtml/PTO/search-adv.htm) provides a databaseof information to select the nexus the user desires to determine. Seereadily available for(http://appft1.uspto.gov/netahtml/PTO/search-adv.html). Informationcommon to all Examples

The examples used herein are presented for solely for purposes ofillustration of the present invention, and chosen for purposes ofsimplicity and ease of understanding, as noted previously the twoexamples chosen are from the database of the United States PatentOffice. The patent or patent applications require is sufficientinformation to determine or formulate a relationship between at least aplurality of patents or patent applications.

The various embodiments of the present invention are best illustrated bythe presentation of examples of as shown below.

EXAMPLE 1 Prior Art Citation Tree Analysis A. SHORTCOMINGS

The following is an example of the use of the most common prior artmethod of citation analysis.

Typical Problem to be Solved:

The prior art method of citation tree analysis is currently used bythose skilled in the art to ascertain relationships between a givenpatent under study to one or more other patents with which the patentstudied is either: (a) cited by subsequent patents as prior art or (b)cites previous patents as prior art.

Prior Art Methodology:

Assume U.S. Pat. No. 5,669,762 is under study for further analysis.Utilizing the prior art method of citation analysis, two common citationtree branches at one degree of separation (i.e., a one-generationcitation reference) is shown in FIGS. 1 and 2. As shown in the figures,the aggregate number of patents presented is ten, which is ninereferences plus the patent under study.

A patent searcher would obtain a copy of each of the patents cited andexamine each patent in depth to determine the connections if any to thepatent under study.

A simple extension of this prior art method and tool is to extend thecitation analysis further by further degrees of separation to enlargethe scope of the search to encompass further prior art. Those ordinarilyskilled in the art of citation tree analysis will understand how thiswould be carried out. Reference is made and incorporated herein to withrespect to the Thompson® citation products for use with respect todetermination of the desired patent database.

Limitations:

This prior art method of simple citation tree analysis, regardless ofthe number of degrees of separation (i.e., generations) employed, isuseful for displaying a connection between a single studied patent andpatents directly cited to it or are directly cited by it, its utility islimited as there must be an unbroken chain of citations to graphicallyto show the chronological relationships, with limited utility for thetechnological connection between any of the patents cited.

FIGS. 1 & 2 are straight forward in appearance and easy to comprehendfor the simple case of a single starting patent and a small number ofgenerations, in this example, one generation forward and one generationback.

This type of analyses can become more complex and problematic to thepoint of being impractical as an analytical tool. As the number ofpatents under study increases (and the need to run individual citationtrees increases the graphical representation of the nexus of informationbecomes more difficult to present.

Tree citation becomes complex resulting from an increase in the numberof patents studied, for example,

An increase in the cumulative number of patent references as the numberof generations (i.e., degrees of separation) increases as measured fromthe patent under study;

The simultaneous examination of both “prior art” references (i.e.,previous patents) and “innovation” references (i.e., subsequent patents)of the patent under study; or

an increase in the cumulative number of patent references as the numberof patents at a given degree of separation is compared to a patentdatabase (i.e., patent thickets).

The process of using citation tree analysis is flawed for detailedtechnological relevance between the patent to be reviewed and a patentdatabase (e.g., U.S. Pat. No. 5,669,762), innovation does not alwaysoccur on a one to one patent basis, but rather often is encompassed on a“one-to-many” patent basis, that is a patent may have relationships toother patents which do not directly chronologically cite to each otheras prior art, and are not directly cited by each other, but rather havecitation or other links through INTERMEDIARY patents.

EXAMPLE 1a Novel Citation Tree Analysis Method Examples

Examination of the PRIOR ART METHOD of the comparison of two patentportfolios where at least one of the portfolios is a patent thicket, anddetermining the technological innovation encompassed in a patent isdesired since the issuance of the patent at issue.

In example 1 analysis is commissioned by APEX Medical Corporation ofTaiwan, the (original) assignee of the patent at issue, U.S. Pat. No.5,669,762, it is desired to discover what, if any, innovation hasoccurred since the issuance of '762 patent, and has been encompassed inany subsequent patents. This objective is a typical goal of citationtree analysis.

Examination of the patents at the USPTO website, as shown by the patentspresented in Example 1, FIG. 2, in our analysis, illustrates onespecific company owns or controls two of the five citing patentspresented by this initial analysis of the patent at issue. The patentsreference our owned by LG Electronics Inc. of Korea. Upon furtherexamination of the USATO website, it is discovered that in excess of5,000 issued patents are assigned to LG Electronics Inc. [“LGI”]

Our analyst determines and illustrates LGI cites the '762 patent asprior art in greater proportion than other entities, as displayed inFIG. 2. Our analysis, shows a novel form of citation tree analysis forfurther analysis of the relationships between the '762 patent and thepatents owned by LGI.

This initial result of the analysis performed could have been morelimited or restricted to directly relevant patents of LGI by furtherdefining selection criteria to limit the desired result; such criteriamay be US Class(es), or keyword(s). The resultant analysis determinedthe technological innovation references indicated in FIG. 2 arerelevant.

The one degree of separation between the patents in terms of achronological link, to the '762 patent in relation to the LGI patentsare shown in FIG. 2. A further generational analysis of therelationships between the '762 patent and the LGI database may bedesired. One way of doing this would be to create multi-generational(i.e., >=2 degrees of separation) citation trees comparing the linksbetween each of LGI's 5,000+ patents relative to the '762 patent to seewhat other references may occur. However, the prior art citation treeanalysis used in Example 1, would require creating five thousand or morecitation trees, to then analyze the results in man-hours would requirehundreds if not thousands of hours and be cost prohibitive.

In the case of studies of more than a small number of patents, or in thecase of examining the relationships between multiple patents, within orbetween patent thickets, it is impractical (from the standpoint ofman-hours, resources, and costs) to analyze the interconnections betweenthe selected patents.

One embodiment of the present invention can provide selections forlimited or predetermined subsets of the desired results of patentscontaining the information of the technological innovation detailed inthe patent or patents.

EXAMPLE 2

The Exploration of Two Sets of Patent Databases Wherein at Least One ofSuch Sets is a Patent Thicket

A user will pre-determine a database of the desired information from theUnited States Patent and Trademark Office website housing an enormouspatent database. The database will comprise at least the followingselected data: The patent numbers of all patents issued by the USPTO;and These patents and published patent applications listed on the faceof the patent at issue . . .

a. A Portfolio “A” comprising only one patent, the '762 patent, isformed; and a Portfolio “B” comprising all of LGI's issued patents ofrecord, (currently in excess of 5,000 patents), is formed comprisingPortfolio “B” otherwise known as (a patent thicket).

The next step in the analysis is to present a “query” or “queries” ofthe database for the patent citations of all connections between the twopatent portfolios “A” and “B” to produce a citation tree analysis asshown in FIG. 3. The citation tree is directed chronologically forwardtwo or three generations (or alternatively as described allinterconnections between the '762 patent and all of LGI's issued USpatents), or otherwise Portfolios A and B, as created: The presentinvention provides a list of any and all intermediary patents,irrespective of to whom the intermediary patents belong; betweenPortfolios A and B; and this is irrespective of the direction of thelinks, whether chronologically forward or backward in time.

A representative query required to accomplish this is to first find allpatents that lie on the referential citation path (e.g. Links betweennodes) between the '762 patent (Portfolio “A”) and each of the patentsowned by LGI (Portfolio “B”). One ordinarily skilled in the art ofdatabase programming can employ current off the shelf microcomputersrunning the Microsoft® Windows operating system and SQL SERVER®relational database software products to program and formulate such aquery. The results are displayed using commercially available graphingsoftware such as “Microsoft Automatic Graph Layout, said tooldocumentation can be found athttp://research.microsoft.com/en-us/projects/msagl/ which isincorporated herein by this reference.

The results of this example are presented in FIG. 3 (the '762 patentplus 4 new Patents) and 4 (the '762 patent plus 37 new Patents. Theresults are presented for two and three degrees of separation betweenPortfolios “A” and “B”. Each example provides a reasonable number ofpatents identified for further review by an analyst and can be performedat a reasonable cost. As one can plainly observe this exampleillustrates that more LGI patents in the citation chain are connectedand require examination. The otherwise arduous and impractical task ofcreating and reviewing thousands of citation trees using prior artmethods and tools has been avoided, and the present invention hasimproved the analysis by presenting a more defined result.

EXAMPLE 3 The Exploration of the Relationships Between Two IdenticalPatent Thickets, Traversing One or More Specific Patents, to Assess theValue of the Patents

This is an example of the comparison of three or more patent portfolios.This example is provided to demonstrate the results of how the presentinvention can illustrate the synergy between a plurality of theportfolios where at least one of the portfolios is a patent thicket andthe analysis requires the discovery of the connection links between theportfolios subject to the constraints pre-determined (a) the links musttraverse one or more of the patents of a third portfolio, and (b) aplurality of the patent portfolios are identical.

One procedure to determine the VALUE of the '762 patent with respect TOthe LGI patent portfolio is to examine all references between each ofLGI's patents contained in its portfolio, as one of the plurality ofportfolios to be examined, and the SAME LGI's patents as the secondportfolio of a plurality of portfolios, subject to the pre-determinedlimitation or configuration of the connection to the '762 patent (i.e.,the third portfolio.

The rationale used to determine the value of the '762 patent is relatedin whole or in part to the interrelationships of the '762 Patent to thepatents of LGI. If the '762 patent is heavily connected to one or moreof the LGI patents, LGI may look for an opportunity to license oracquire the '762 patent by LGILGI.

The present invention provides for a method to economically andefficiently determine the chronological relationship history between the'762 patent and the LGI patent portfolio.

Using the same databases as before, where the result to be determined isthe relationship between the '762 patent and the two identical databaseof LGI's patent portfolio, the query to determine the information of theconnections in the citation tree analysis are structured such that:

Portfolio “A” comprises all patents owned by LGI.

Portfolio “B” consists of the '762 patent only.

Portfolio “C” also comprises all patents owned by LGI.

Portfolios “A” and “C” are identical.

The results of the first query of the database for two degrees ofseparation between the two (2) LGI database of the patent portfolio andthe '762 patent (LGI vs. LGI via '762 @ 2 degrees) yields the surprisingresult, of only two patents in the LGI portfolio database that are(i.e., 6,206,135 and 5,804,777) interconnected through the '762 patent @2 degrees of chronological separation are shown in FIG. 5.

Within the scope of the present invention, the query took only a fewseconds to run providing both an economical and efficient result. If itdecided to further broaden the analysis to 3 degrees of chronologicalseparation to find if further interconnected relationships exist betweenthe '762 patent and the LGI patent database with the same constraints,the results are shown in FIG. 6. Again, it took a few seconds to obtainand yield four patents of the LGI patent portfolio database and thepatent owned by another company, Danfoss Compressors GmbH of Germany.The resultant relationship diagram indicates a highly connected set ofrelationships between the '762 patent and the LGI portfolio patentdatabase, with a small set of patents to evaluate in more detail withrespect to the interconnection with the '762 patent.

A search query of 4 degrees of chronological separation between the '762patent and the LGI portfolio patent base are shown in FIG. 7., Theresults of this query yielded 37 patents of LGI patent databaseportfolio and the '762 patent. The results as shown in the diagramillustrate a highly connected set of relationships between the '762patent and the LGI patent portfolio database. The results present whatmay be termed a “small worlds” of patents as illustrated in the diagram,which may imply sub networks of technology or technologies related tothe '762 patent.

EXAMPLE 4 The Exploration of the Relationships Between two Non-IdenticalPatent Thickets, Traversing a Third Set of Patents, the Third Set ofPatents Comprise one or More Database of Specific Patents to AssessTheir Value

The comparison of three or more patent portfolios where one or more ofthe portfolios may be a patent thicket and the point of the analysis isto determine the discovery of patents that are linked, i.e.,interconnected between the two patent portfolios, where one portfoliocomprises the patents owned by one or more specific entities (e.g.,assignees), where said patent portfolios are identical, and said patentportfolios are subject to the limitation where an interconnection musttraverse at least one patent of a third patent portfolio database.

In contrast to EXAMPLES 2 and 3 provided above, an alternate way toprovide this result, which may be a way to evaluate the value of the'762 patent, is to examine any and all patent references between apatent portfolio comprising a specified selection of LGI's competitors'patents in one of the portfolios to be examined, and a second patentportfolio comprising all of LGI's patents where the relationship betweenthe two patent portfolio databases must traverse the '762 patent, whichcomprises a third patent portfolio database.

The basis of the rationale for this analysis is that the value of the'762 patent is related in whole or in part to:

The licensing or outright sale of the '762 patent to LGI based upon theinterconnections of the '762 Patent to the patents chronologicallylinked by the query, which is a subset of the patents of LGI's closestcompetitors.

The licensing or outright sale of the'762 patent to one or more of LGI'sclosest competitors based upon the interconnections of the '762 Patentto a specific patent or set of patents owned by an LGI competitor orcompetitors.

The licensing or outright sale of the'762 patent to one or more of LGI'sclosest competitors based upon the interconnections of the '762 Patentto any of the patents of an LGI competitor or LGI's competitors.

The present invention provides a method for said analysis to be donequickly and easily, over the prior art methods.

To determine which competitor or patent database of a competitor anonline database such as Hoovers (see http://www.hoovers.com) can beexamined for the patent assignment data. Three competitors are readilyfound, specifically:

Sony Corporation (holding more than 26,000 patents);

Philips Electronics (holding more than 7,000 patents ;=); an

Panasonic Corporation (holds more than 1,700 patents).

Each of these competitors' patent portfolios would constitute a patentthicket. In a combination portfolio, as illustrated in this example, thepatent thicket contains in excess of 35,000 patents!

For a first determination, three queries are run on the patent databasesusing the present invention to assess and compare the number ofchronological interconnections @ 2 degrees of separation between LGI andeach of the above competitors, the following is found:

There are more than 10,000 unique interconnections or links between thepatents of LGI and f Philips Electronics at two degrees of chronologicalseparation;

There are more than 49,000 unique interconnections or links between thepatents of LGI and Sony Corporation at two degrees of chronologicalseparation; and

There are more than 1,000 unique interconnections or links between thepatents of LGI and Panasonic Corporation at two degrees of chronogicalseparation.

We next employ the same database of patent numbers and references asused in the prior examples. The query of the present invention isstructured such that:

Portfolio “A” comprises all patents assigned or owned to LGI;

Portfolio “B” holds only the '762 patent; and

Portfolio “C” comprises all patents currently assigned or owned byPhilips, Sony and Panasonic.

The results of the analysis @ 2 degrees of chronological separationyields no patents, the query is run @ 3 degrees of chronologicalseparation, and again. The result yields no patents, both of which arebelieved to be surprising results. The query is run @ 4 degrees ofchronological separation, and yields a result of 9 patents that areinterconnected or linked.

Only 9 patents having unique links or interconnections between thepatents of LGI's portfolio patent database and the patent thicketcomprising the combined patent portfolios of Philips Electronics, SonyCorporation, and Panasonic Corporation, at four degrees of chronologicalseparation that pass through the '762 patent exist. The result is shownin FIG. 8.

At this scale of four degrees of chronological separation, theconnections to two of the patents of the LGI patent portfolio databaseterminate in three patents of Sony Corporation patent portfoliodatabase, but traverse the '762 patent and three patents that were inPortfolio C of the patent database but have now been assigned to two newowners, the two new potential licensees (i.e., two patents were assignedto Silent Systems, Inc and one patent was assigned to MangerInternational Ltd.). These assignees may be potential competitors,infringers, or companies in related technologies. The present inventionhas provided for small set of patents in the very large portfolio of thecombined patent databases allowing for examination for more specificrelevancy. The user of the present invention is now provided with a verymanageable number of patents to examine in detail to assess a value forthe '762 patent, or possible infringement of the '762 patent, ortechnological or economic combinations of the patents.

Further, with the information provided by the present invention the userin this hypothetical example can determine whether or not it would be inthe best interests of APEX Medical Corp. to acquire the intermediarypatents illustrated by the analysis before approaching a potentiallicensee or buyer of the '762 patent.

As an example here, the present invention has provided informationregarding the discovery of potential patent acquisition targets, orpotential buyers of its own technology as encompassed in its '762patent, or patents it may desire to purchase related to the technologyin the '762 patent.

The methods of the prior art did not provide sufficient information tomake a limiting determination of the patents that should be examined,such as made possible by the present invention. The present inventionprovides a means to obtain information not economically and efficientlyobtainable by the methods and tools of the prior art.

EXAMPLE 5 Exploring the Relationships Between two Patent ThicketsTraversing Patent(s) in one or more Us Current Classifications to AssessPatent Value or Licensing Opportunities

This is an example of the comparison of three or more patent portfolioswherein the analysis involves the discovery of links between two of theportfolios subject to the constraint that the links must traverse one ormore of the patents of the third portfolio, wherein the third portfoliocomprises one or more subclasses of patents, irrespective of by whom thepatents of such third portfolio are classified by the USPTO as one ormore specific class/subclasses but may be owned or controlled by morethan one assignee, (e.g., all nanotechnology patents residing in CLASS977 including its subclasses).

In this example, the General Electric Company (GE) owns or controls over30,000 issued US patents and is conducting a study to ascertain whichpatents of GE may be related to patents residing in one or moresubclasses of US Class 977 in an effort to determine the value of thepatent, and the licensing potential of any GE's patents related to thisClass.

Determine of potential acquisition targets for GE in the nanotechnologyspace is a desired result of the queries of the present invention,especially where the acquisition targets may be complimentary to thepatents of GE, or said patents may interfere with said patents of GE inthe nanotechnology space.

A database to determine the patent portfolio databases in thenanotechnology space is chosen. In this example, the source ofinformation for the patent databases ishttp://www.nanotechcompanies.us/. Patent Portfolios contained withinthis database include such nanotech companies as IBM Corporation,aggregate, holding over 50,000 issued US patents, not all necessarilyrelating to nanotechnology. One option which is not feasible using theprior art methods and tools is to examine each of the 30,000+ US patentsof GE and the 50,000+ US patents of IBM residing in one or moresubclasses of US Class 977, and determining interconnections or linksexist between the two patent portfolio databases, then using thisinformation to derive a subset of the patents contained in the Class 977technology.

Utilizing a query of the present invention for a quick examination ofthe relationships between the entire GE and IBM patent portfolios yieldsin excess of 1,600 such interconnections or links between the two patentdatabases.

The present invention provides a method to expedite this analysis.First, a third patent database portfolio is created comprising a pseudoentity (“Mr. Nano Tech”), the entity for this analysis is deemed to ownor control all of the patents residing in US Class 977. Mr. Nano Tech'spatent portfolio comprises in excess of 10,000 issued US patents. Thepresent invention now provides the basis for the formulation of thisquery utilizing the following three portfolios:

GE with 30,000+ patents—Portfolio “A”

Mr. Nano Tech with 5,000+ patents—Portfolio “B”

IBM with 50,000+ patents—Portfolio “C”

The present invention provides for this analysis to be done in a fewminutes on the hardware and software system described above, yieldingthe following results.

A first approximation query of the patent databases (as shown in theprior examples) determines which patents of GE are linked, irrespectiveof chronological direction, to the patents of the IBM patent databaseportfolio subject to the limitation the intermediary patents areclassified by the USPTO in the nanotechnology Class of 977. At twodegrees of chronological separation (i.e., from GE to IBM via Mr. Nano),there are approximately 1000 relationships between the patent portfoliosof GE and IBM that traverse the patent portfolio of Mr. Nano Tech.

Upon further analysis, the results show only 143 patents of Mr. NanoTech are intermediary to and directly related to the patents of GE andIBM. The specifics of the 143 patents, although not trivial, are smallcompared to the size of the patent portfolios of GE, IBM and Mr. NanoTech, individually. The results are shown in FIGS. 9A and 9B. Theconnections among the patents are arranged in small subsets or ‘worlds.’As part of the review of the patents, an examination to organize thefindings in the context of these small worlds, to ascertain any specificrelevancy or interconnection of the particular patents to each other isperformed.

The intermediary patents in this exercise are determined through theselection of the patents listed by US Current Classification rather thanassignee. These results may be further delineated. A further refinementin the example would be to constrain Mr. Nano Tech's portfolio such thatthe patents in the patent portfolio database cannot be owned orcontrolled by IBM or GE. The further delineated result is preferred, ifone wanted to examine the interconnecting patents solely based on thirdparties where acquisition is an interest. To constrain the contents ofPortfolio “B”, the analyst would need to add one field to each of theoriginal database records, namely, assignee name, and direct the queryto exclude specified assignees from the output. Such information isreadily available from the USPTO website and could be easily integratedinto the method.

The instant example is broad in scope in that it also affords theanalyst with the opportunity to examine direct relationships between theGE and IBM database of patent portfolios constrained solely by therequirement the interconnection or link be through Class 977.

EXAMPLE 6 The Exploration of the Relationships Between two PatentThickets Traversing a Patent Portfoloio Comprising Patents Assigned toone or More Specific Assignees to Assess Patent Value or LicensingOpportunities Thereof

The comparison of three or more patent portfolios where the analysisinvolves the discovery of interconnections or links between two of theportfolios subject to the constraint that the links must traverse one ormore of the patents of a third patent portfolio where the thirdportfolio comprises the patents of a single assignee.

In this example, a company, or entity, such as IBM's nanotechnologygroup, is exploring the possibility of licensing technology under thecontrol of the United States of America. To do determine, whichlicensing opportunities make sense, the relationships between the patentportfolios comprising all of IBM's patents (recall from the foregoingthat they number 50,000+) and the portfolio of Mr. Nano Tech, above(recall from the foregoing they number 5,000+), but now subject to theconstraint that the relationships traverse a third portfolio comprisingpatents that are owned or controlled by the United States of America(“USA”). The USA patent database portfolio consists of approximately40,000 patents. This is a massive exercise to perform and virtuallyimpossible to do manually.

The results of the query of the present invention (at two degrees ofchronological separation in Class 977 from IBM to Mr. Nano via the USA)yield approximately 1,200 interconnections or links comprising over1,000 patents, 208 patents are owned or controlled by the United Statesof America and are intermediary patents to the patent thickets of IBMand Mr. Nano Tech. Given the large size of the original patent thickets,it is a relatively easy task to examine the 208 patents for specificrelevancy with respect to the desired information. To do this online,the user uses the direct URL (uniform resource locator) to a givenpatent as is provided by the USPTO. For example, U.S. Pat. No.5,669,672, the URL would behttp://patft1.uspto.gov/netacgi/nph-parser?patentnumber=5669762. Thediagram shown in FIG. 10 illustrates the points of interconnection orlinks between the individual patent references to the thickets and smallworld patent databases created.

EXAMPLE 7 The Exploration of the Relationships Between two PatentThickets Traversing Patent(s) Assigned to one or more Assignees, saidAssignees are Represented by a Single Specific Attorney, a Single Firm,or a Single Agent

The comparison of three or more patent portfolios where the analysisinvolves the discovery of interconnections or links between two of theportfolios subject to the limitation the interconnection(s) or link(s)must traverse one or more of the patents of a third patent portfoliowhere such third patent portfolio comprises the patents of one or moreassignee(s) who are represented by a single patent attorney, a singleagent, or a single firm.

In this example, a relatively large sized intellectual property lawfirm, McDonnell Boehnen Hulbert & Berghoff LLP, has been retained toexplore the opportunities one clients may have in licensing one of moreof their respective patents to IBM.

To do this, an examination of the relationships between a patentportfolio comprising all of IBM's patents that are linked orinterconnected to an IBM patent that traverses a second patent portfolioof all of the patents of the law firm's clients on which the law firm isCounsel of Record, which second portfolio patents number in excess of4,000 patents. Here a large patent thicket of IBM's database portfolioof patents is matched against itself, in conjunction with a smaller butnonetheless formidable patent thicket of the law firm.

The present invention requires the determination of a query to explorethe links or interconnections with the IBM patent portfolio, inconnection with itself, and the links or interconnections are limited toa connection or link to one or more of the law firm's client patentswhere said law firm is listed as Counsel of Record.

The initial query is set up for one degree of separation between the lawfirm's client patents and any IBM patents in the IBM patent portfolio,providing two degrees of separation between the twin IBM patentportfolios. There are 2,716 interconnections or links between thepatents of the IBM patent portfolio databases, 1,129 patents of the IBMpatent databases and the law firm client database portfolio, 317 patentsin the law firm client database have a link or a connection to one ofthe patents in the IBM patent portfolio database. A further refinementor determination can be made. The refinement may be desirable given thepotential upside for one or more of the law firm's clients, thepotential upside can be found, for example, if a blocking patent orother synergistic relationship can be discovered between the respectivepatent they own and an another patent which can be exploited ifacquired, purchased, licensed, or otherwise monetized.

For a further refinement of the results, the twin end point portfoliosare the patents contained and owned by Mr. Nano, in the Mr. Nano patentportfolio database.

The query formulated for one degree of separation is between the lawfirm clients' patents, and any of Mr. Nano patents in the Mr. Nanopatent database; (i.e. two degrees of separation between the twin Mr.Nano portfolios), illustrates there are 688 interconnections or links,332 patents which traverse the three patent portfolios, 80 patents ofwhich are owned by the law firm clients. The graph of the results isshown in FIG. 11. A noticeable small world(s) of patents are illustratedin FIG. 11. The small world of patents illustrates the interconnectionsor links illustrating the relationships between the Mr. Nano patentportfolio and the law firm clientele portfolio. A more detailedexamination illustrates a very highly connected subset of patents fromthe patent databases to the end point portfolios. This may beinterpreted as a measure of the law firm client's patent(s) value.

EXAMPLE 8 The Exploration of the Relationships Between two PatentThickets Traversing one or more Patent(s) Assigned to a SpecificAssignee, which Assignee Comprises an Institution such as an Instituteof Higher Learning as a University or Research Institute to DirectFurther Research, Assess Patent Value and/or Discover PotentialLicensing Opportunities Thereof

The comparison of three or more patent portfolios where the analysisinvolves the discovery of links or interconnections between two of theportfolios are subject to a limitation the links or interconnectionsmust traverse one or more of the patents of the third portfolio, thethird portfolio comprises patents of a single assignee, where saidsingle assignee is an institution of higher education, such as aresearch institute or university.

In this example, the Board of Trustees of the esteemed Leland J StanfordJr. University desires to explore the opportunities one or more of itsresearchers for licensing one of more of their respective patents toMicrosoft. The University is commissioning this work to help support itsfurther research and development activities by obtaining revenues fromits patent portfolio.

To do this, the present invention requires queries be defined todetermine the relationships between the patent portfolio databasecomprising all of Microsoft's patents (numbering 10,000+) that areinterconnected or linked to another Microsoft patent database thattraverses a portfolio of all of Stanford's patents (2,000 or morepatents). In this example, an extremely large patent thicket,Microsoft's patent portfolio is matched against itself, in conjunctionwith the patent thicket of Stanford University.

The present invention employs the same methodology as before, in thiscase, the initial query will explore the links from the Microsoft patentportfolio to itself, the links or interconnections are limited to thepatents connected through one or more of the patents of StanfordUniversity.

At one degree of separation between the patents of Stanford Universityand Microsoft (two degrees of separation between the twin Microsoftportfolios) there are 244 interconnections, 127 patents overall,twenty-five patents of Stanford University are found to be relevant orinterconnected. A small number of patents were deduced given the massivenumber of patents searched by the query; these patents represent apotential upside for Stanford University if a blocking patent or othersynergistic reference can be discovered. The graph of the results isshown in FIG. 12. One should note small worlds of patents created bythese interconnections or links. As illustrated in FIG. 12, small worldsof the patents of the Stanford University researchers are very highlyconnected to the end point portfolios. This may be considered a measureof the Stanford University researcher's patent portfolio's value.

It is an object of the present invention to provide an improvedsystematic and efficient method for analyzing the mutual citationrelationship between the patents from a patent database(s) or databases,and provide a graphic or other pictorial of the analyzed results.

EXAMPLE 9 The Exploration of the Relationships Between two PatentThickets Traversing one or more Patent(s) Assignee) to a SpecificAssignee of Interest to an Entity to Discover the Identities of theInventors who may be Useful Participants in Future CollaborativeResearch Activities gor Such Assignee or Entity in which the Inventor(s)in Question Possesses Special Interests, Skills, and Experience

The comparison of three or more patent portfolios where the analysisinvolves the discovery of links between two of the patent portfoliossubject to the limitation the links must traverse one or more of thepatents of a third patent portfolio where such third patent portfoliocomprises the patents of one or more inventors, where said inventorshave a history of inventing one or more technologies of interest. Thisanalysis is done for discovering the identities of said inventors, wherein setting up a query the first and third portfolios are identical.

It is important the present invention be recognized for applicabilitybeyond discovering the links or interconnections between patentportfolios and a set of patents. For example, it is desirable todiscover people who are skilled in a particular art relating to a givenpatent portfolio or patent. This is sometimes referred to as an assemblyof collaborative resources for innovation. The entity conducting such asearch, may be initiating, or expanding, its research and developmentactivities and desirous of obtaining new talent and personnel for saidresearch.

As noted, in the “Future of Tech” section of the Jul. 3, 2006 issue ofBusiness Week Magazine, a profile of a company named IntellectualVentures [“IntVen”] is described. IntVen was founded by a formerMicrosoft Corporation Vice-President named Nathan Myhrvold for thepurpose of collecting or compiling by invention or acquisition, insimple terms, “innovation” and to secure such innovation wheneverpossible through patents. The Business Week Magazine article describeshow and why Myhrvold often assembles a selected group of experts to workon a specific problem, the experts may work together in a brainstormingor so-called “invention session.” The judicious selection ofappropriately qualified candidates for invitation to such sessions is akey prerequisite to promoting innovation at the session. The articlesheds little light on how to easily obtain a suitably qualified group ofparticipants, the article only notes such groups are somehow ‘invited’by Mr. Myhrvold.

In a New Yorker Magazine article, “Annals of Innovation” by MalcolmGladwell, dated May 12, 2008, once again, there is presented adescription of such “invention sessions” conducted by Mr. Myhrvold andthe article includes the statement there is a concomitant need for theassembly of a suitable collaborative environment to promote innovation.The New Yorker Magazine article describes various routes to innovation,from the serendipitous to the impliedly deceitful. The central theme ofthe article is the prerequisite and utility of assembling a qualifiedgroup of experts in a single venue for a focused session to invent orinnovate. The qualified groups are specially selected by Myhrvold or hisstaff. No further elaboration on this process is provided in thearticle.

Employment of the method of the present invention demonstrates a new anduseful means of selection of candidates for such invention sessions. Theultimate venue(s) of these invention sessions may be physical or in thevirtual world known as the web.

In this example, Nathan Myhrvold, founder of Searete LLC the company'sapparent purpose is to acquire or develop intellectual property forlicense to others. Myhrvold recognizes the significant but relativelysmall patent portfolio of Searete presents some barriers to his visionof controlling certain key technologies.

Myhrvold would like to expand his control over such technologies but hehas run into problems locating prospective scientists and engineers whoare qualified to participate in one or more invention sessions. Thepurpose of these invention sessions is to develop the technologiestaught in the existing patents of Searete LLC. The Prior Art methods areinefficient and futile in Mr. Myhrvold's opinion.

The present invention is employed to explore the expanse of US Patentsrelated to the current patent portfolio of Searete, LLC (“Searete”).Searete owns or controls nearly 100 patents, which patents encompass 35principal U.S. Current Classifications. The task is more difficult thanthe methods the prior art can economically manage such as looking at acitation tree of each of Searete's patents, and then examining each(patent).

The following strategy is employed by the present invention to determinethe inventors or researchers Mr. Myhrvold may desire to hire. A list ofthe existing issued patents of Searete LLC is created in a patentportfolio. A first approximation of determining a list of patentsteaching technologies similar to the technologies taught in the existingpatents of Searete LLC. The user of the present invention notes andcompiles a list of the first listed US Current Classification from eachof the patents (i.e., the “principal class”) for each Searete patent. Adetermination of said technologies finds there are thirty-five suchprincipal classes.

The USPTO (see http://www.uspto.gov/go/classification/) provides a listof all patents classified in any of the previously mentioned Seareteprincipal classes (the Searete Prin. Class Patents). The presentinvention employs the methodology for a query extrapolated from a booktitled: “Wisdom of Crowds: Why the Many Are Smarter Than the Few”,wherein it is argued, “A diverse collection of independently-decidingindividuals is likely to make certain types of decisions and predictionsbetter than individuals or even experts.” The book was published in2004. ISBN-13:978-0385503860 (http://en.wikipedia.org/wiki/The_Wisdom_ofCrowds).

Therefore, if an invention is at least partially classified by theUSPTO, that is, having at least one of its listed classes as being oneof the Searete Prin. Classes, there will simultaneously be (a) a morediverse selection of inventions, and inventors discovered, having (b)more than a random selection of the underlying technologies in theSearete Principal Classes.

Using this analysis methodology, the size of the Searete Prin. ClassPatents portfolio comprises nearly 40,000 patents, and totals nearly60,000 distinct inventors, this is in spite of the fact the originalSearete patents numbered less than 100. The following results provide apatent thicket and an inventor talent pool Mr. Myhrvold, may desire toexplore. Mr. Myhrvold even if he wanted to do so, would not be able toscreen these potential candidates using the methods and tools of theprior art. The present invention provides an efficient method to makesuch determinations.

A database is compiled, of three patent portfolios, namely,

A first portfolio, Portfolio “A” comprising the Searete LLC patents;

A second portfolio, Portfolio “B” comprising the Prin. Class Patents;and

A “third” portfolio is a duplicate of Portfolio “A”. The presentinvention, utilizes the following queries:

The discovery of all prior art (undirected) with reference links betweenPortfolio “A” (i.e., the Searete LLC patents) to its duplicate Portfolio“C” (i.e., the Searete LLC patents); and subject to the limitation, thelinks must traverse one or more of the patents of Portfolio “B” (i.e.,the Prin. Class Patents) for learning the patents, and the associatedidentities of the inventors in the interconnected or linked patents.

The results of running the above queries provide the information thereare only 25 unique patents linked or connected to the Searete patents,and 44 distinct inventors. The word “only” in this context is a goodthing, since the objective of this exercise was to focus the search andobtain a manageable number of inventors to contact.

The present invention provides a list of 44 inventors for Mr. Myhrvoldto contact, along with corresponding patent numbers, for Myhrvold'sfurther review and determination as to whether such inventors may beappropriate invitees to an invention session. The present inventionutilizes the same methodology above. Would enable a human resourcesprofessional, either a so-called recruiter, or an employer's staffmember, to discover and aid in the recruitment of high technology talentin an efficient manner.

A slightly broader set of patents for Portfolio “B” can be utilized byselecting them from a set of ALL US Current Classifications of Searete(and not just the Principal Classes).

A further approximation is also available for determining a broader listof patents comprising technologies similar to the technologies of theexisting patents of Searete LLC.

EXAMPLE 10 The Exploration of the Relationships Between two PatentThickets Traversing one or more Patent(s) Assigned to a SpecificAssignee or of Interest to an Entity to Discover the Identities ofInventors who may be Interested as Participants in one or more SocialNetworks) Concerning the Technology in which the Inventor(s) in QuestionPossesses Special Interests, Skills and/or Experience

One of the newer methods of describing and utilizing theinterrelationships of entities, whether they are people or organizationsis through what is typically called a “social network”. In a socialnetwork, an entity is related to another entity by similarities in oneor more criteria or common traits. For example, people may share similareducational backgrounds, hobbies, friends, professional pursuits, etc.

Most recently, many of these social networks are embodied on websites onthe internet. In fact, the website known as “Wikipedia” currently listsmany diverse examples of social networking websites (athttp://en.wikipedia.org/Wwiki/List_of social_networking_websites). Bookson the topic of network theory as applied to social networks abound. Oneexample is Linked: How Everything Is Connected to Everything Else andWhat It Means by Albert-Laszlo Barabasi, Professor of Physics at NotreDame University (ISBN-10: 0452284392).

In the s above referenced book, Barabasi discusses the prior researchand work of the late Stanley Milgram, formerly a social psychologist atHarvard University. While at Harvard, Milgram conducted what he calledthe “small world” experiment. In this experiment, Milgram examined theaverage path length of connections between entities in a social networkcomposed of people in the Unites States of America. An outgrowth of thisexperiment, was the conceptual phrase of “six degrees of separation”(although Milgram reportedly may not have ever used that phrase himself,or at least not initially) whereby it was hypothesized that any twogiven people in the world at large, the world's population itself,constituting a social network, are separated by no more than five otherpeople. Thus if, in a given set of people, Joe knows Bob, and Bob knowsSue, and Sue knows Peter, then Joe is said to be “three degrees” awayfrom Peter.

In a simplified description, Milgram's experiment (which involved thesending and receiving of postal mail communications to and amongstrandomly selected people in certain US cities) concluded the averagepath length between such random people in the experiment was 5.5 (orapproximately, six) and thus, in subsequent descriptions of the work, itcame to be stated that no two people are separated by more than ‘sixdegrees’ from each other.

Returning to the discussion of social networks, one apparentlysuccessful social networking site for business professionals isLinkedIn® located at http://www.linkedin.com. LinkedIn Corporationclaims to have more than 30 million members in its social network.LinkedIn promotes itself by asserting among other things on its homepage that, by becoming a member, one can “find people and knowledge youneed to achieve your goals”. Thus, the social network presents itself asa means for any given member to efficiently mine and utilize for variousand sundry business purposes, the personal and professional datapresented by 30 million other members. The present invention providesthe same benefit. The present invention provides for the efficientexploration of vast “data forests,” comprising so-called patentthickets, and illustrating the results. The present invention providesfor efficient exploration of said data to determine the interconnectionsor links as a cornerstone benefit of the present invention. ValdisKrebs, the Founder and Chief Scientist of orgnet.com, and a managementconsultant, states on his website at http://www.orgnet.com/about.htmlthat his company Orgnet.com provides social network analysis software &services for organizations, communities, and their consultants.

In an Internet downloadable audio interview, a so-called “podcast”,which was distributed by a company called IT Conversations at the URL ofhttp://itc.conversationsnetwork.org/shows/detail3559.htm, Krebs speaksat length about the shortcomings of many of the current online socialnetworks such as LinkedIn.

Among the shortcomings of LinkedIn as identified by Krebs is that theentity (person or organization) wishing to join LinkedIn has to expendsignificant effort to prepare, and just as importantly, to keep current,its online profile containing its various criteria necessary to link itto other entities in the network. This can be an especially difficultand costly undertaking for entities that have complex backgrounds,skills and objectives.

It is common practice on social networking sites to request access to anewcomer's network by requesting access to the newcomer's private emailcontact list(s) and matching those private email contacts to the emailaddresses in the site's database. Krebs also discusses the shortcomingsof LinkedIn in terms of privacy. Krebs notes in order to explore andextract or “mine” the data of the social network, one needs to exposeoneself to the targets of the data mining which exposure may beproblematic for the newcomer should the newcomer ultimately decide notto join the network. To explain this point, Krebs discusses what issometimes called the “creep factor” (as in ‘creepy’, i.e., disturbing)that is the case where a person may not ab-initio desire to explicitlybecome a member of a social network and thereby become harassed bystrangers who are wanting to add that person to their respective networkfor the purposes of mining that newcomer's data, prior to the newcomerfully exploring the environment of the network and its constituents.Privacy is an especially important consideration for companies orgroups, which may wish to exploit the benefits of social networkingwhile not sacrificing the privacy in the valuable existing knowledge andcontacts they already possess. The contacts a company possesses may havevalue not only as to how much it cost to obtain them, but also becauseexposing the contact list to others in a non-confidential environmentmay in turn expose related confidential information. For example, if oneknows company X, a maker of widgets, has a list of 50 nanotechnologyexperts in its contact list, the natural and likely valid inference isCompany X is in the process of developing nanotechnology products, afact that may not be theretofore publicly known. The uncontrolleddivulgence of contact lists can pose harm to the disclosing party.

The present invention avoids the aforementioned drawbacks of socialnetworks by allowing the user to be self-organizing, private, andtherefore secure from harassment.

For example, the present invention allows the user to be self-organizinginsofar as all inventors, assignees, law firms and other dataappurtenant to a given patent or application are known.

A newcomer to the network created by the present invention can reviewand pick their prospective “friends” or “associates” without exposingtheir private information to those they do not want to know.

The present invention can identify where in the social network ofinventions, the newcomer's skills and interests reside, as anintermediary of all other inventions of the network participants

Example 10 is of a Social Network, as shown below for one degree ofseparation. See FIG. 31 for two (2) degrees of separation illustrationof Example 10.

Searete LLC the holder of approximately 150 patents desires to establisha social network of members involved in nanotechnology, having somerelationship by prior art reference to any of Searete's patents. Searetedesires to discover these members with minimal effort and no publicexposure of Searete's confidential contact list. The present inventionmay be employed to accomplish this quickly and efficiently.

First, a Portfolio ‘A’ of Searete's patents is compiled. Next, aPortfolio ‘B’ of all patents is compiled. Then a query is formulated todiscover all patents in Portfolio ‘B’ that reference any patent inPortfolio ‘A’ at one degree of separation. This analysis results in aset of 40 patents. Unfortunately, 26 of these are patents of Searetereferencing its other patents. However, of the 40 patents, 14 arepatents related to nanotechnology of others and therefore candidates forfurther review for invitation to the new social network

See FIG. 33.

In the event, the particulars of the patents discovered does not meetthe requirements of Searete, a second case can be run using the samemethodology and data. The query is run at 2 degrees of separation. Thequery is to include members involved in nanotechnology having somerelationship by prior art reference to any of Searete's patents.

The results of this analysis is a set of 688 patents (this includes the1 degree of separation subset of 40 patents). Again, many of these arethe patents of Searete referencing its other patents. However, of the688 (including the newest 648) patents, many more are the patents ofothers and therefore candidates for further review for invitation to thenew social network.

Searete has expended minimal effort by using the present invention inthe compilation of the list of candidates and at no time was theconfidential information of Searete exposed. Searete can furtherpre-screen and evaluate the prospective members without notifying themof its search efforts, unless Searete desires to do so.

The benefits of the present invention as applied to social networks willbecome further apparent upon review of the following example.

In this example, Microsoft is exploring the feasibility of a newbusiness venture, involving the establishment of its own socialnetworking site for inventors, technology companies, patent investmentcompanies, and venture capital (“VC”) investors. Microsoft marketresearch studies have indicated to Microsoft that the primary issues andimpediments to such sites include the following:

How does one attract enough participants to seed the network in a timelymanner and at an acceptable cost? Microsoft knows “to the swift belongthe spoils” as the cliché goes. Thus, the social network needs to“self-organize” and at a rapid pace (e.g., seehttp://en.wikipedia.org/wiki/Self-organization).

To address the privacy concerns of a VC (which VC may have an expressedinterest in the social networking concept since VC's are always lookingfor a means to make timely pre-investment searches for synergisticinvestments with the VC's present clients or to expand their investmentportfolios into new areas), Microsoft does not want the VC's identityexposed to investees (individual inventors or companies) or prospectivecompetitors (other VC's) before such time Microsoft is ready to maketheir approach to an acquisition target. Moreover, VC's have advisedMicrosoft that exposing their contacts to competitors can be ‘suicidal’from a competitive point of view. Thus, the newcomer VC should not haveto expose its private email or other contact list details to the sitejust to become a member.

Microsoft knows from its own experience in recruiting new staff, and inexpansion and acquisition explorations, it is not a trivial task to findeither inventors or companies with inventions that are compatible withand, even better, accretive to Microsoft's massive existing patentportfolio. To ease the uncertainty of a newcomer to the social network,it is desirable the newcomer, VC, is not required to seek out othersthat may have compatible interests, but rather have a system in place todiscover and propose such prospects to the newcomer VC in a systematicand efficient manner for review by the newcomer.

Patent investment (or invention session) companies such as IntellectualVentures (“IV”), have expressed concerns that the use of a public socialnetworking site for acquisitions of desirable technology or therecruitment of skilled professionals in symbiotic technologies, cannotonly prematurely expose their strategic motives but also invitesunqualified applicants. IV, for example, has been searching for suchalternatives, and has not found an alternative network, and thereforejoined the public site LinkedIn.com finding no other viable choices(e.g., see IV Linked-On page athttp://www.linkedin.com/companies/intellectual-ventures). Ideally, thepatent investment or invention session companies desire to operate attimes in a “stealth” mode. These companies prefer to do theirprospecting in relative privacy, and only expose their interest in aprospective company or individual at a time of their choosing.

EXAMPLE 11 The Exploration of the Relationships Between two PatentThickets Traversing Patent(s) Assigned to one or more SpecificAssignee(s) to Determine if any of such Assignee(s) or the SpecificPatents of such Assignee(s) may Comprise a Prospective AcquisitionTarget

This example explores the use of the methods of the present invention inthe analysis by one entity of the intellectual property consequences ofthe prospective corporate takeover of a second entity by yet a thirdentity.

Our analyst has been now been retained by Oracle InternationalCorporation, a developer and licensor of database software products,owning more than one thousand US patents.

Oracle management has learned through the public media thatInternational Business Machines Corporation [“IBM”] is attempting toacquire the corporate assets of Sun Microcomputers Inc. [“SUN”] for overseven billion dollars.

Oracle management is caught off-guard by the announcement and isconcerned with the consequences of such acquisition and in particular,the combination of the SUN portfolio of thousands of US patents,together with the IBM portfolio of tens of thousands of US patents, toimpair, dilute or defeat the strength of the Oracle patent portfolio.Oracle, knowing that the three entities, SUN, IBM and itself eachholding many thousands of patents, constitute a patent thicket, in factthree patent thickets, making the exploration of such patent domainsimpractical if not impossible using the tools and methods of the priorart, at least within the time frame demanded by the present situation.Thus, Oracle has retained the analyst to explore situation and toevaluate the potential risks in a systematic and timely manner.

The analyst employing the method of the present invention visits theUSPTO website and determines the problem can be organized as follows:

Portfolio “A” of IBM >50,000 patents

Portfolio “B” of SUN >7,000 patents

Portfolio “C” of Oracle >1,000 patents

Next the analyst uses the same hardware, software and methodology as inthe above examples to determine which of the patents residing inPortfolio “A” (IBM) refer (as reported on the face of the patents inquestion) to which patents residing in Portfolio “C” (Oracle) such thatthe path of the references must traverse one of the patents residing inPortfolio “B” (SUN).

The analyst determines in a matter of a couple of minutes that more than5,700 connections occur between “A” (IBM) and “C” (ORACLE) through “B”(SUN), comprising approximately 3,400 patents, of which 520 patentswhich are assigned to SUN lie on the path between the patents assignedto IBM and Oracle (thus, two degrees of separation from IBM to Oracle).Even though a graphical representation of these results is obtained,given the number of intermediary patents and the overall size of thethicket, the analyst decides to present the results in other than agraphical format that is to first obtain and compile (hard copy orimage) for review the front page of each of the 520 patents. This iseasy since the analyst knows that these images are available fromprivate companies such as Thompson & Thompson as well as at the USPTOwebsite for review, downloading or printing. Although 520 patents is aformidable number it was far fewer than the number of patents in any ofthe individual Portfolios “A”, “B” or “C”, and thus a manageable numberof patents to have the Oracle patent department and outside counselreview.

At any rate, the significant number of such intermediary patentsdemonstrates to the analyst and to its principal, Oracle, howintertwined the portfolios of the three companies are. Given themulti-billion dollar transaction contemplated, the man-hours to revieweach in detail is justified to see if Oracle would be wise to proposeits own counteroffer for SUN.

Should this review result in the identification of one or more keypatents of SUN or Oracle (or identification of one or more key USCurrent Classifications), the method can be repeated with a new morefocused set of data, Portfolio B-1 (SUN) and/or C-1 (ORACLE), comprisingthose patents as intermediaries or end points, respectively, in whichcase the results in graphical form may be more meaningful.

The analyst also recognizes that the same methodology would prove highlyuseful to the United States Department of Justice and the applicabledepartment(s) of the European Union in ascertaining and determining theimpact on an acquisition of SUN by IBM, Oracle or others.

EXAMPLE 12 The Batch-Wise and Real-Time Exploration of the RelationshipsBetween two Patent Thickets Traversing a Known Set of Issued or PendingPatent(s), such as the Known Set of Issued or Pending Patent(s)Contained in an Information Disclosure Statement and/or Patent SearchReport, and Relating to a Patent Undergoing Prosecution by a PatentExaminer to Aid and Assist the Examiner in Identifying and ReviewingRelevant Patent Prior Art

Even though our analyst is not employed by the USPTO, the analyst hasdiscovered a way that the method of the present invention could be usedby the USPTO to assist the examiners there in the discovery of relevantprior art. Since the examiners are (in other than the re-examination orre-issue proceedings) dealing with other than an issued patent, the useof the present invention in such context is slightly different from themethods otherwise described in the foregoing examples.

As is well known, unless and until a patent application issues as apatent, there is no final determination of prior art references and bydefinition there are no formal forward citations, since the forwardcitations require the prior art to be published. Therefore, the toolsand methods of the prior art citation tree analysis are not useful tothe examiner or at least not as useful as the methods of the presentinvention. Thus, the method that the USPTO uses relies on theInformation Disclosure Sheet of the applicant (IDS), if any, as well ason the services and expertise of the USPTO in-house search professionalsto discover prior art typically using classification and keyword searchcriteria. The result of each case is a list of potentially relevantpatents, which all need to be reviewed in detail by the examiner. Insuch case, many person-hours are expended compiling the in-house search.

Often the results of such methods of the prior art are less thansatisfactory (as evidenced by the explosion in the number of patentdisputes, reexamination and reissue proceedings in recent years) and assuch there is a need for a new method that will draw upon theinformation discovered by the prior art method and utilize it as a meansto employ the methods of the present invention as an means to improveupon the methods of the prior art in a systematic and cost-effectivemanner.

The analyst knows that it can synthesize a first approximation of aprior art citation list of a given application by assembling:

All of the references contained in the IDS; and

Either all of the references of the USPTO search report; or

All of the references of the search report that the examiner deemsrelevant.

Once the cited cases are discovered, the Examiner can compile either oftwo sets of patents based thereupon, namely:

“Classmates” (see definition in examples, infra.) of all patents in thefirst approximation of a prior art citation; or

A list of all of patents using any of the keywords the examiner deemsrelevant, from the review of the USPTO in-house search report.

Once the above cases are assembled, the analyst can quickly employ themethod of the present invention as follows:

Case I

Portfolio “A”—All of the Classmates of the approximated citation list

Portfolio “B”—A Pseudo Patent (‘pseudo’ in the sense that it is a patentapplication—transformed—into a patent by the addition of a synthesizedlist of references) having all of the patents in the approximatedcitation list as its cited prior art.

Portfolio “C”—All of the Classmates of the approximated citation list

Case II

Portfolio “A-1”—All of the patents using any of the keywords that theexaminer deems relevant

Portfolio “B”—A Pseudo patent containing all of the patents in theapproximated citation list cited as prior art.

Portfolio “C-1”—All of the patents using any of the keywords that theexaminer deems relevant

EXAMPLE 13 The Batch-Wise and Real-Time Exploration of the RelationshipsBetween two Patent Thickets Traversing a Known Set of Issued or PendingPatent(s), such as the Known set of Issued or Pending Patent(s)Contained in an Information Disclosure Statement and/or Patent SearchReport and/or from some other Contributed Source, and Relating to aPatent Undergoing Review by an Online Community of Paid or VolunteerReviewers, such as Members of a Patent Review Community CommonlyReferred to a “Peer-To-Patent”, to Aid and Assist the Reviewers inIdentifying and Reviewing Relevant Patent Prior Art

Recently an initiative has been launched by the USPTO in collaborationwith the New York University Law School in the so-called “Peer to PatentProject” to attempt to expedite the review and prosecution of patentapplications. The details of the project can be found athttp://dotank.nyls.edu/communitypatent/about.html (“Peer2Patent”). Inbrief, the project solicits prior art references from the supposedlyspecially qualified members of the public to aid the USPTO in its reviewof the given set of pending applications. The participants are given theapplication and any available IDS to aid them in their review. As aparticipant finds art that they deem relevant, that art is published tothe Peer2Patent website and made available to all subsequent searchactivities and participants. In this way, it is felt that the collectiveinput from the public at large, (thus the so-called “wisdom of thecrowds”) will aid the examiner at the USPTO in the search for prior art.The Peer2Patent project has its shortcomings insofar as it relies on thebenevolence of unpaid and unproven members of the public to donate theirtime to the search and review activities. The method is still largelyun-automated other than for accumulating allegedly relevant prior artfrom the participants.

As in the case of the foregoing example in connection with the USPTOpatent examiner, the participants in the Peer2Patent project are relyingon their ability to use whatever lists of prior art that are madeavailable to them (i.e., in the case of the USPTO, from the IDS and thein-house searcher, and in the case of the Peer2Patent participants, theprior art seeded by the Peer2Patent project which sometimes includes anIDS as well as all subsequent Peer2Patent participants' suggestedadditions thereto.

Thus, in sum, the Peer2Patent is merely a means to draw upon the laborof a larger set of patent searchers and the supposed benefit to theUSPTO is that they are doing the searching at no cost to the USPTO.

Since determining the real benefit to the USPTO is more complex thanjust counting the added information that is supplied to it by the laborcost free Peer2Patent participants, the USPTO desires to automate thereview of information supplied to it by the Peer2Patent project in thesame manner that the information supplied to it in-house is reviews bythe analyst employed by the USPTO in the prior example.

In this case, however, the method of the present invention is especiallyhelpful since the systematic and automated method is especially prone tointegration into the Peer2Patent project as a feedback procedure. Forexample, in the prior art Peer2Patent methodology the following stepsoccur:

A new case is posted by Peer2Patent for assistance, with whateverproposed prior art that Peer2Patent has knowledge of, e.g., from theUSPTO IDS;

The Peer2Patent participants respond by posting their proposed prior artcitations to the Peer2Patent website for other Peer2Patent to examine;and

The Peer2Patent cycle repeats.

The analyst proposes a new Peer2Patent enhanced embodiment based uponthe methods of the present invention. Specifically, as soon as a case isposted at the Peer2Patent website and then as each new piece of priorart is received, a Peer2Patent participant suggests art, the method ofthe present invention may be executed and the results thereof may besupplied in near real-time to all Peer2Patent participants for review.The vast number of Peer2Patent participants in the review process isleveraged in the review of such results. Thus, the steps of thepreferred new embodiment are as follows:

A new case is posted by Peer2Patent for assistance, with whateverproposed prior art that Peer2Patent has knowledge of, e.g., from theUSPTO IDS;

The Peer2Patent participants respond by posting their proposed prior artcitations to the Peer2Patent website for other Peer2Patent to examine;

Along with the new case, the website also publishes at the same time, ingraphic and tabular formats, the results of the following analysis

Case I

Portfolio “A”—All of the Classmates of the approximated citation listbased upon the original Peer2Patent proposed prior art as updated by thePeer2Patent participants' most recent analysis.

Portfolio “B”—contains a pseudo patent having all of the patents in theapproximated citation list cited as prior art references.

Portfolio “C”—Comprising the same patents contained in Portfolio “A”;and/or

Case II

Portfolio “A-1”—All of the patents using any of the keywords thePeer2Patent participants deem relevant; and

Portfolio “B”—A Pseudo Patent having all of the patents in theapproximated citation list as it is cited prior art.

Portfolio “C-1”—Comprising the same patents contained in Portfolio“A-1”.

The enhanced Peer2Patent cycle repeats.

As the analyst explains to the USPTO, the improved system can be made toexecute the method of the present invention automatically as soon as newprior art is posted for the case in question on the Peer2Patent website,depending upon computer resources available to the Peer2Patent websiteoperators. The advantage to the USPTO of this enhanced Peer2Patentsystem is that along with the leveraging of the Peer2Patentparticipants' labor in the review of the initial and updated manualprior art citation postings, the Peer2Patent participants will also beimproved by giving them the perspective of the context of the patentapplication (i.e., as it is transformed continually into the mostcurrent version of the pseudo patent) in question vis-à-vis therelationship thereof to all other patents having similar features ornomenclature.

EXAMPLE 14 The Exploration of the Relationships Between two PatentThickets Traversing a Third Set of Patent(s) Owned or Controlled by aSpecific Entity, which Entity is Intending to Offer such of its Patentsfor Sale to Discover Prospective Buyers Thereof and/or to AssessPotential Value of the Patent of Interest for Furnishing to theProspective Buyers of the Patent in the Course of such Offering

Often a patent holder will decide for any number of reasons that it istime to try to divest itself of one or more of its patents. Variousvenues for such sales exist, such as auction sales.

One such popular auction venue is operated under the name OCEAN TOMO(see http://www.oceantomo.com). The common operational mechanismemployed by such venues is typically to obtain prospective bidders tothe sale by invitation often with a substantial attendance fee andusually to publish in advance of such sales, a catalog of the various“lots” or patents for sale. Sometimes a given lot will comprise morethan one patent under common ownership and typically somehow involvingrelated technologies. An example of a page from an Ocean Tomo auctioncatalogue is shown in FIG. 13.A

Ocean Tomo uses a common method of implying value to the offered patentlot by the posting of a “Sample Forward Citation Analysis” in such lotcatalog. As has been explained, supra. This method involves obtaining alist of subsequent patents that list the patent in the lot as prior art.An example of the forward citations relating to the above referencedpage from the Ocean Tomo action catalogue as referred to in FIG. 13A isshown in FIG. 13.

Ocean Tomo presumes these forward citations as an indication of value inthe patents offered for sale insofar as the latter patents discoveredare deemed evidence to Ocean Tomo of continued developmental orcommercial interest in the technology in question and the citation linkis evidence of relevancy.

In this example, our analyst has been retained by the operators of theOcean Tomo auction house because Ocean Tomo has discovered to its dismaythat despite having upwards of one hundred patent lots at a givenauction, there are typically only a small number of these lots thatresult in actual auction sales and those that do sell thereby do notresult in the revenue that the Ocean Tomo would have obtained if a salehad occurred. Thus Ocean Tomo would like to see if the analyst candiscover more relevant art so as to (1) increase consummated sales whichin turn would add to Ocean Tomo's profitability and (2) discover newpatent bidders for participation in its events.

The analyst believes that one likely reason for the small “sales tooffering ratio” is that Ocean Tomo's method of using the prior artSample Forward Citation Analysis method is deficient in at least tworespects. First, it does not identify all of the potential buyers for agiven patent lot and second, it does not identify to the invited biddersthe full context in which the offered patent lot resides. Together thesedeficiencies combine to make the offering less attractive to theuniverse of prospective bidders, some of which may not have ever beeninvited to the sale since Ocean Tomo had no knowledge of their potentialinterest in the patents being offered.

Thus the analyst decides to employ the new method of the presentinvention to provide a more rational, systematic and useful means of (1)developing a prospective bidders list and (2) demonstrating the contextof the patents being offered for sale relative to the technology eitherof interest to or having to do with the patents owned by the prospectivebidders, all in all thereby assisting those bidders to ascertain aprospective value of the offered patent lot, which new method is morefully explained below.

It is well known that appearing on each U.S. patent application whenpublished and each patent when issued, is one or more technologyclassifications of the USPTO to which the patent in question is assigned(the coverage of such assignments may be adjusted periodicallythereafter as the classification definitions change, i.e., the “currentclassification” of the patent in question is the then currentassignment). These classification assignments comprise at least oneso-called ‘principal classification and sometimes one or more additionalother classifications. Classifications are meant to organize the patentsby features of the inventions therein disclosed.

These initial classifications appear on the face of the patent inquestion and whether later changed or not, at any time the then current“current classification” may be obtained from the USPTO website for thepatent in question.

It is therefore possible to obtain and compile these classification datafrom the respective location for any given patent. The analyst assigns anomenclature to assist in this analysis as follows:

“Classmates” (of the original patent under study, that is the patentoffered for sale)—The set of patents that is assigned to aclassification that is the same as the principal classification of theoriginal patent under study. Note that the principal classification ofthe Classmate in question may or may not be the same as the principalclassification of the original patent under study; and

“Schoolmates” (of the original patent under study, that is the patentoffered for sale)—The set of patents that is assigned to aclassification that is the same as any of the classifications of theoriginal patent under study.

The analyst believes that it is more logical when exploring forpotential acquirers of a given patent to first look for patent holderspossessing patents having similar features (e.g., sharing one or moreclassifications) and in addition to discover those of such set whichhave one or more referential relationships (in this case by andundirected citation path) to the patent being offered for sale, ratherthan just looking at patents that happen to reference the patent withoutregard to classification.

Moreover, the analyst believes that it is important to examine theCONTEXT of all such patents, that is, to discover those cases in whichthe patent under study (i.e., which is being offered for sale) isjuxtaposed as an intermediary patent in a map of the other patents ofthe set in question (i.e., the patents of the prospective acquiringentity) irrespective of the direction of the time path between any twonodes (patents) in the graph, since if the patent under study is sopositioned relative to the patents of the prospective acquiring entity,it is more likely that it will be more valuable to the prospectiveacquiring entity.

Furthermore, the number of interconnections traversing the patent understudy is an indication of the value of the patent that is, the morelinks that traverse the patent under study from the patents of others,the more valuable the patent under study may be, since it is morecentralized in the small world of patents discovered. This is incontrast to Ocean Tomo's undue reliance on forward citation analysis,which merely examines the number of latter-issued patents that cite thepatent in question as prior, art, in chronological order; hence, OceanTomo's is a directed analysis. On the contrary, the analyst explorespatents that involve the patent in question irrespective ofdirectionality, that is, the links between the patent in question andother references need not be via a continuous direction, but rather thatlinks may or may not vary between latter and earlier dated patents solong as the chain of links is unbroken. Thus is the patent for sale isX, it may be linked to patents A, B, C, & D; and although patents A & Cmay be newer than X, B & D may be older patents which do not cite Xdirectly but do cite A and/or C, which in turn cite X directly. Thus the‘network’ of patents in which X resides includes 4 patent, two of whichwould not be found in the two patent network discovered by the prior artforward citation method heretofore employed by Ocean Tomo.

Once the analyst discovers this set of the patents of the prospectiveacquiring entity, these data may be used to (1) contact the prospectiveacquiring entities for invitation to the auction and (2) present to anyand all attendees via the auction catalogue the data set as furtherevidence of the claimed value of the patent lot in question.

In either case should a greater number of such relevant patents bediscovered as compared to the prior art method of Sample ForwardCitation Analysis there is a benefit to the analyst's client, Ocean Tomoin the promotion and conduct of its auction and prospective revenues itwill derive.

Accordingly, using this nomenclature and rationale, in the context ofthe present invention, the analyst is able to perform an analysisorganized in two cases as follows:

Case I. The objective is to select a set of patents that share similarfeatures of U.S. Pat. No. 6,526,351 (the '351 patent) and are linkedthrough a closer relationship (in this case, via an undirected onedegree of separation prior art citation) to the '351 patent, by onlyexamining relationships to its Schoolmates:

Create a Portfolio “A” which is comprises the Classmates of the '351Patent;

Create a Portfolio “B” which consists of the '351 Patent;

Create a Portfolio “C” which is identical to Portfolio “A.”

Case II—The objective is to select a set of patents that share similarfeatures of the '351 patent and are linked through a broaderrelationship (in this case, via an undirected one degree of separationprior art citation) to the '351 patent, by examining relationships toits Schoolmates.

However, the analyst believes that Case II, which exploration implicitlyincludes the study of Class I Classmates, and is therefore likely todiscover more patents and/or assignees, may nonetheless suffer inmaintaining technological relevancy, due to the fact that the broaderselection of classes studied (i.e., including classes other than theprincipal class of the patent under study):

Create a Portfolio “A” which is comprises the Schoolmates of the '351Patent;

Create a Portfolio “B” which consists of the '351 Patent; and

Create a Portfolio “C” which is identical to Portfolio “A”.

In any event, the analyst is confident that since the prior art methodof forward Citation Analysis being used by Ocean Tomo ignoresclassification entirely, that either of the two Cases I or II aspresented here will produce more highly relevant results.

Now, performing an analysis using the method of the present invention,in each of the above Cases I and II, to locate all patents from therespective Portfolios “A” and “C” which traverse the respectivePortfolio “B”, yields two sets of patents, shown graphically as FIGS. 14and 15, respectively.

The analysts goal here is to obtain a larger number of patents and/orassignees thereof, who may therefore have an interest in the acquisitionof the '351 patent.

It should be mentioned that if data is available to the auction house asto the prices paid (and dates sold) for past patent acquisition, thensuch data, preferably adjusted to a common basis taking into accountinflation, may be correlated or overlaid onto the respective plots toinform the sellers and buyers of the relative prices for each patent sopresented in the figure.

Comparing the results of the above Cases II, and II, we have thefollowing results:

Case I Case II Classmates Schoolmates Method Method Degrees ofSeparation 1 2 1 2 (distance) from the ‘351 Patent to the DiscoveredPatent(s) Number of Unique Patents 13 233 26 641 Found Number of UniquePatents 4 123 12 313 Found which would not be have been discoverableusing Forward Citation Analysis'351 Students vs. '351 Students via 6,526,351—Assume forward cites arevalid but not good enough measure of value

EXAMPLE 15 The Exploration of the Relationships Between two PatentThickets Traversing a Third Set of Patent(s) Owned or Controlled by aSpecific Entity which Entity is Intending to Offer such of its Patentsfor Sale to Discover Prospective Buyers Thereof and/or to AssessPotential Patent of Interest to the Patent Seller for Furnishing to theProspective Sellers of the Patent in the Course of such Offering

Finally in the context of the Ocean Tomo auction sale, the analystproposes either (i) as an initial bidder prospecting tool or (ii) as anadditional so-called “up-sell” product to be offered by Ocean Tomo toits prospective sellers and/or bidders is to process their subset ofpatents (either patents they own, control or otherwise expect to obtain)through the method of the present invention such that the relationshipsbetween that subset to each of the patents to be offered for sale in theauction in question. The analyst proposes such a method would discoverlatent relationships the prospective bidder would not have otherwisediscovered.

For a demonstration of this embodiment to Ocean Tomo, the analystproposes that Ocean Tomo may have been wise to invite Google to itsauction for the '351 patent (Note that GOGGLE was not listed in theOcean Tomo catalogue under the Sample Forward Citation Analysis sectionso the analyst reasonably considers that the GOGGLE was not consideredby Ocean Tomo to be a serious bidder prospect). The analyst selectedGoogle as a candidate at random, based solely upon common publicknowledge that Google has some websites devoted to mapping technology(see, http://maps.google.com/maps). The analyst's conclusion, thatGOGGLE INC may indeed have wanted to bid on the '351 patent if it were(1) made aware of the sale and (2) given some reasonable justificationof the reason why it should want to bid on the '351 patent, is bestillustrated by a simple application of the method of the presentinvention as follows:

Create a Portfolio “A”, which comprises the patents assigned to GOGGLEINC.; and

Create a Portfolio “B” which consists of the '351 Patent; and

Create a Portfolio “C” which is identical to Portfolio “A.”

The results of this analysis, which surprise Ocean Tomo, shows that atfour degrees of separation between Portfolios “A” and “C” subject to theconstraint the path between them traverse Portfolio “B” (i.e., the '351patent), shows that the three patents assigned to Google are present inthe network of patents which network consists of the '351 Patent, thethree Google patents along with two patents assigned to Delorme Inc.,which was in fact listed in the Sample Forward Citation Analysis as aprospective relevant technology and likely intended invitee to bid. Theactual results are shown in FIG. 16.

The analyst points out to Ocean Tomo that this brief analysis using themethod of the present invention accomplishes two distinct beneficialresults, namely, (1) it has identified Google as a theretofore uninvitedprospective bidder and perhaps just as importantly, (2) If Ocean Tomoentices Google to the auction and/or demonstrates to all prospectivebidders the relationships identified in the study, that not only thesale may be more likely to consummate but also that the purchase priceobtained therein may be higher that would otherwise be the case, each ofcircumstance would benefit Ocean Tomo.

EXAMPLE 16 The Batch-Wise or Real-Time Exploration of the Relationshipsof one or more Patent Thickets which Traverse a Set of one or morePatents in Connection with the Reissue, Re-Examination and/or Litigationof such one or more Patents

Microsoft Corporation has retained the services of a patent analyst toassist it in discovering relevant patent prior art. The prior art to bediscovered is in connection with Microsoft's defense in a patentinfringement lawsuit being brought by certain owners of U.S. Pat. No.5,787,449. Some commentators refer to the plaintiff in such a case as aso-called “patent troll” insofar as the plaintiff does not itselfapparently practice the invention (otherwise sometimes commonly referredto as a “non-practicing entity”)of the '449 patent but only obtainsrevenue there from by licensing its rights to such patent to others.Microsoft expects that the damage award in the lawsuit could approachhundreds of millions of dollars, so Microsoft is quite keen ondiscovering relevant prior art both before and during the trial.

Our analyst believes that the method of the present invention provides ameans to discover prior art in a systematic and efficient manner usingthe search for patent relationships in which the '449 patent is anintermediary and in which the features of the related inventions aresimilar would assist Microsoft in this matter. To do this, the analystconstructs three patent portfolios as follows:

Portfolio “A” which is comprises the “Classmates” of the '449 Patentcomprising in excess of 450 patents (i.e., U S Class 715/203);

Portfolio “B” which consists of the '449 Patent; and

Portfolio “C” which is identical to Portfolio “A.”

The analyst uses the method of the present invention to locate allpatents from the respective Portfolios “A” and “C” which traverse therespective Portfolio “B” and finds that there aren't any at two degreesof separation (from “A” to “C”) through “B”. In fact, the analyst findsthat there are no such occurrences at up to and including three degreesof separation, either. Undaunted, the analyst runs additional cases,taking many minutes but still a manageable time, until reaching fivedegrees of separation and surprisingly finds that indeed there are, allof a sudden, 850 distinct relationships found, comprising 201 patents,as shown graphically as FIGS. 17A and 17B.

In addition, as shown in the figures, there are contained in thecomprehensive graph, which itself appears to be somewhat chaotic, whatappears to the analyst, to be numerous so-called sub-networks, or “smallworlds,” of patents, in the context of the small worlds, the analystbelieves, the small worlds may have special significance, noting thedissection of the relevance of the prior art of the '449 patent. Thesetwo small worlds are graphically shown in FIGS. 18, and 19.

Without the method of the present invention, the analyst recognizes thatit would be difficult to perform this search even at two degrees ofseparation and it would be impossible to do so at the higher distancesrequired, i.e. >=5 degrees of separation.

As an alternative embodiment still using the methodology of the presentinvention, the analyst recognizes that since the '449 patent relates toso-called Extensible Mark-up Language (commonly referred to by thoseskilled in the art as “XML”) technology, that it may also be useful toexplore relationships between the '449 patent and all other patentsusing the term “XML” in the claims of such other patents. To do this,the analyst constructs three patent portfolios as follows:

Portfolio “A”, which is comprises the set of all other patents using theterm “XML” in the claims (approximately 2,700 patents);

Portfolio “B” which consists of the '449 Patent; and

Portfolio “C” which is identical to Portfolio “A.”

The analyst employs the method of the present invention and discoversthat at three degrees of separation there are 73 patents that relate tothe '449 patent, a graphical representation of these results being shownin FIG. 20. If the detailed review of these patents does not result inthe discovery of the desired prior art, then it is clear that theanalyst could increase the degrees of separation further, that is beyondthree, to expand the breadth of the search and obtain more patents. As afirst approximation however, the analyst tries to minimize the scope ofthe search.

In each case the analyst's goal is to obtain a set of one or morepatents and/or assignees thereof, who may have published informationabout art that would be prior to the filing date of the '449 patent andcould therefore be argued to have anticipated the invention claimed inthe '449 patent.

As the pre-trial discovery runs its course and as the trial commences itis known to the analyst that often new prior art emerges (or isdiscounted) that needs to be reconciled with the existing knowledge baseof patents theretofore discovered. The analyst advises Microsoft counselthat during such periods, it would be a simple task to add (or subtract)prior art references to the portfolio matrix used in the method of thepresent invention and re-execute the method, repeatedly during suchperiod in real time.

EXAMPLE 17 The Exploration of the Relationships Between one or morePatent Thickets which Traverse a set of one or more Patents inConnection with the Review of the Merit of Paying a Maintenance FeeThereon or Alternatively Allowing said Patent(s) to Abandon

As observed by Kimberly Moore (see, Moore, Kimberly A., “WorthlessPatents” Jul. 2004. George Mason Law & Economics Research Paper No.04-29), “. . . 53.7% of all patentees allow their patents to expire forfailure to pay maintenance fees”. Thus, the author contends that manypatents are abandoned for failure to pay maintenance fees after adetermination, rightly or wrongly, that the patent in question is notworth the continuing investment in fees.

The present invention comprises a means to assist the patent owner inascertaining a relative value of a given patent in advance of the timethat the decision to pay the maintenance fee or allow abandonment needsto be made. The means to do this will be described by the followingsynthetic example.

BP Amoco Corporation [“BP”] is a large multinational oil company holdingthousands of patents, including U.S. Pat. No. 6,695,983 (which patentteaches a method of producing a crude synthetic gas or “syngas” productstream or a syngas product stream by further processing of the crudesyngas product stream) which issued Feb. 24, 2004, and which was due forits first maintenance fee payment during the time period commencing Feb.26, 2007. Up until the present, the '983 patent has not generated anydirect revenue for BP, a common and primary measure of the patent'sworth to a company.

BP knows that if the patent is not likely to generate revenues, it maybe more economically prudent from an overall corporate return basis notto pay the scheduled maintenance fee allowing the patent to abandon,thereby freeing up the capital that would have gone to the fee paymentfor other more productive use. In the past, BP has made suchdeterminations in an industry standard way, that is, by convening one ormore meetings of ad hoc committee(s) of its scientists, engineers,patent attorneys and corporate licensing executives to review theparticulars of the patent in question including any past and/oranticipated revenues expected there from, to discuss and provideopinions as to the value of such patents in order to provide a basis fordetermining the merits of paying the maintenance fees in question.

BP's experience has been that the tangible results of such committeesessions have been mixed (and in any event quite expensive) since mostof the determinations have been made based upon known relationships ofthe patents in question to the patents of others already known to BP.Typically the basis of these relationships involved the discussion ofanecdotal evidence provided by the committee members, occasionallysupplemented by the use of some forward citation tree diagrams for thepatents in question. In addition, there is always the risk to a patentholder abandoning a patent too soon. The patent holder may learn totheir dismay that without the patent rights still viable other unknownpatents may adversely affect the patent owner to their detriment. Infact, BP has no real evidence that the decisions made heretofore havebeen valid.

Since BP has thousands of such decisions to make each year in the US andother countries, it is clear that there is a present commercial need forand BP is looking for a more methodical and cost effective method todetermine valuation and therefore whether or not to pay the fee. Thefollowing examples will describe the use of the present invention toaddress such present commercial need.

Case I—Relationship within the Patent Thicket of the '983 Classmates

An analyst is retained by BP prior to the maintenance fee due date, toassist BP in gathering information to ascertain the relative value ofthe '983 patent. The analyst will accomplish this task using the methodsof the present invention. The analyst believes that the method of thepresent invention can provide insight into the latent as well as overtrelationships between the '983 patent and its peers, thereby providinginformation to BP as to the value and potential uses of inventionclaimed in the '983 patent and in turn guidance as to whether or not itwould make sense to pay the maintenance fee. Thus, to discover andexplore these relationships, the analyst organizes the subject patentand its peers as follows.

Portfolio “A” Classmates of '983 Patent—(US Class 252/373) Comprisingapproximately 1,500 patents;

Portfolio “B” comprising the '983 Patent; and

Portfolio “C” is identical to Portfolio “A.”

As a first case, the analyst ‘maps’ portfolio “A” on to “C” via “B”(i.e. the analyst is looking for undirected citation tree link chainsfrom ‘A’ to ‘C’ constrained by the requirement that each chain must atsome point traverse the patent of ‘B’) at up to three degrees ofseparation (the analyst uses more than the minimum 2 degrees ofseparation to broaden the search scope, which the analyst often finds instudies such as that described in the instant example, is moreproductive in discovering latent relationships) depending upon howhighly congested or connected the patent under study is relative to theuniverse of patents in the study.

The results of the exercise are presented as FIG. 21. The analyst finds91 patents are presented through 312 paths with 23 patents beingconnected as intermediates to the end point patents and at the same timeincluding a path through the '983 patent.

In fact upon further initial exploration, the analyst reports that someof the patents that fall into the intermediate set are assigned to whatBP would have considered an unlikely entity, General Motors Corporation,a company outside of the main business circle of BP and heretoforeoutside of consideration by BP as a potential licensee or assignee ofthe '983 patent.

Armed with the list of patent numbers, the analyst is able to downloadthe patents from the USPTO website and produce a concise briefing bookfor all committee members to review in advance of the meeting describinghis findings.

Case II—Patent Thicket of the Closest Friends Patents.

The analyst also believes that there is some merit in starting with thesimple citation tree of the prior an of the '983 patent, but instead ofusing the results of the prior art method directly to deduce value as isdone in the prior art methodologies, the analyst will use the initialresults to compile a new patent thicket of broader but still likelyrelevant art for further processing with the method of the presentinvention. In this instance, a new term is introduced by the analyst,“Close Friends” of a given patent, that is, the set of all the forwardand backward citations of a given patent at a specified number ofdegrees of separation.

Portfolio “A” Three Degree Close Friends of 6,695,983—Comprising 23patents;

Portfolio “B” comprising 6,695,983; and

Portfolio “C” identical to Portfolio “A.”

As a first case, the analyst maps portfolio “A” on to “C” via B <=3degrees of separation (the analyst uses more than the minimum 2 degreesof separation to broaden the search scope, which the analyst often findsin cases such as that described in the instant example, is moreproductive in discovering latent relationships).

The results of the exercise are presented as FIG. 22. The analyst finds23 patents are presented through 92 paths being connected asintermediates to the end point patents and at the same time including apath through the '983 patent. Armed with the list of patent numbers, theanalyst is able to download the patents from the USPTO website andproduce a concise briefing book for all committee members to review inadvance of the meeting describing his findings

Case III—Patent Thicket of the Principal Classes of Closest FriendsPatents.

Finally, just to make sure that the search for art is broadest whilestill relevant, the analyst once again starts with the principal classesof all patents in the patent thicket created in Case II, immediatelyabove, but using the results of which to compile a second patent thicketof likely relevant art for further processing with the method of thepresent invention comprising those patents residing in the principalclasses of all such constituents of the synthesized patent thicket.

Portfolio “A” the Principal Class of Three Degree Close Friends of6,695,983 comprising approximately 8,000 Patents;

Portfolio “B” comprising 6,695,983; and

Portfolio “C” identical to Portfolio “A.”

As a first case, the analyst ‘maps’ portfolio “A” on to “C” via B <=4degrees of separation (the analyst uses more than the minimum 2 degreesof separation to broaden the search scope, which the analyst often findsin cases such as that described in the instant example, is moreproductive in discovering latent relationships).

The results of the exercise are presented as FIG. 23. The analyst finds27 patents are presented through 43 paths and at the same time includinga path through the '983 patent. Armed with the list of patent numbers,the analyst is able to download the patents from the USPTO website andproduce a concise briefing book for all committee members to review inadvance of the meeting describing his findings.

EXAMPLE 18 The Batch-Wise or Real-Time Exploration of the RelationshipsBetween two Identical Patent Thickets each Thicket Comprising the set ofall Issued and Pending Patents Prosecuted by a Specific Attorney, Firmor Agent in Connection with Discovery, Disposition and Future Avoidanceof Ethical Conflicts of Interest by such Attorney, Firm or Agent

A major Canadian law firm, Smart & Biggar/Fetherstonhaugh (“SBFH”) billsitself as “Canada's largest firm practicing exclusively in intellectualproperty and technology law”. The law firm also represents its clientsbefore the USPTO. SBFH like most law firms probably likes to keep upwith the latest technologies in running its practice.

An intellectual property analyst recognizes that one problem law firmsin general have, and large law firms in particular have, is that giventhe volume of patent prosecutions that these firms have and the numberof patent professionals that they employ, it is increasingly difficultto monitor and control potential conflicts of interest as new clientscome on-board adding to the pool of intellectual property alreadycompiled by existing or former clients. The analyst contacts SBFH abouta new means of discovering potential conflicts of interest using themethod of the present invention, namely, discovering and exposingcircumstances in which SBFH attorneys may be prosecuting patentapplications before the USPTO on behalf of a current SBFH client and inthe course of such representation, are citing the patents orapplications of another current or former SBFH client. As the analystknows, since an attorney has a number of duties to each of its presentand former clients, without going into the nuances of the problems ofsuch a situation, the analyst knows that specifically in this context,the latter patent prosecution may operate to the detriment of the formerpatent's value and hence pose harm to the former or other currentclient.

Thus, the analyst proposes that it perform an introductory study forSBFH in that it creates two portfolios, as follows:

Portfolio “A”—All of the patents in which SBFH was attorney of record atissuance; and

Portfolio “B”—is identical to Portfolio “A.”

The analyst then queries the database used in all of the prior examplesto discover all cases in which a patent in Portfolio “A” cites a patentin Portfolio “B”, thus, at one degree of separation from “A” to “B”. Thequery takes a few seconds to run.

The results of the exercise are presented as FIG. 24 (and in the zoomedin view of a section of the FIG. 24 as FIG. 25). The analyst finds 88patents are presented through 59 paths. Moreover, the results presentedin the attached figures are presented with a color coding to representinstances in which the assignee of record of each patent is identifiedwhen the assignee of the Portfolio “A” instance is not the same as theassignee of the Portfolio “B” instance, that is, when an SBFH attorneycited a patent for a assignee of the Portfolio “A” client against apatent for a different record assignee of the Portfolio “B” client.

The results presented in the figures are striking and quite unexpectedby SBFH given the great lengths SBFH takes as all competent law firmstake to avoid conflicts. The analyst recognizes that the data presentedby his analysis is but the first step in exploring a possible conflictof interest, given that the assignees of record may have consented tothe dual representation and/or the assignees of record although havingdifferent names, may now be or formerly have been under common ownershipor control, thus potentially mitigating or negating the effect anyethical conflict.

More specifically, as clearly shown in the zoomed-in view presented inFIG. 25, in the case of U.S. Pat. No. 4,319,138 (shown on the face ofthe patent being assigned to Shaban Manufacturing Inc.) and U.S. Pat.No. 3,918,817 (shown on the face of the patent being assigned to WacanHydro-flow Ltd.). Moreover, the most recent assignment of the patents inquestion is available from the USPTO website and such latest data may ormay not affect the ethical issues described herein depending upon thedates of such latter assignment if any.

In any event, since this result is ‘after the fact’ in that theprosecution has already occurred, the ethics partners at SBFH now likelyhave to explore each prospective case which has been clearly identifiedby the method of the present invention in FIG. 24 to ascertain if anyreal prejudice to one or both clients' patents has occurred and todetermine what further steps need to be done to remedy any problemscaused thereby.

The analyst notes and informs SBFH that in addition to the prior ‘afterthe fact’ example, that this analysis can, however, be done ‘before thefact’, that is in real time during a prosecution, as prior art isdeveloped both by the as filed Information Disclosure Sheet or by USPTOexaminers in the course of the Office Actions by adding such new art tothe respective portfolios and re-executing the query. Thus, the analystadvises the SBFH ethics partners this efficient method should be addedto the SBFH conflicts clearing operations immediately. The ethicspartners at SBFH advise the analyst that they will discuss the matter atan upcoming partners' committee meeting and consider the licensing andimplementation of the method.

EXAMPLE 19 The Exploration of the Relationships Between one or morePatent Thickets Owned or Controlled by a First Entity such that theRelationships Between such Patents Traverse the Patent Thickets Owned orControlled by a Second Entity for the Purpose of Determining theProspective Costs and Benefits of Entering into a Field License withsuch Second Entity Relating to such Patents

As a further example of the method of the present invention addressesthe problem of many companies which have incomplete knowledge of both(a) their own patents as well as (b) the patents of their competitors ina given technology. Often, as referred to in detail supra, whenconfronted with a perceived or actual threat of a patent infringementclaim, a large company may opt to deal itself out of a potential problemby just trying to bury its head in the sand and ‘punt’ the problem byoffering to cross-license its own technologies to its competitor. Inaddition, typically the patent portfolios of parties to suchtransactions comprise patent thickets, either in terms of absolutenumbers of patents or at least with respect to the numbers of patents inthe area of technology in question.

Obviously ignoring an issue in such a pig-in-the-poke licensing scenarioexposes each cross-licensor to the problem of potentially over-payingfor the licensed patents of the other cross-licensor as neither licensorknows what exposure they have or what they are really getting in return.The method of the present invention provides a better alternative todiscover and decipher the interconnections of the thicket.

On Sep. 17, 2001, prior to the availability of the present invention itwas announced that Rambus Inc. and Intel Corporation signed acomprehensive patent cross-license agreement. (Seehttp://www.design-reuse.cominews/424/rambus-intel-sign-comprehensive-patent-cross-license-agreement.html).The analyst knows cross-licensing arrangements (as a means to settlelitigation) are not uncommon. Therefore, the analyst believes that thereis a current need for a more methodical means of determining whether itmakes sense to fight a patent suit rather than giving up potentiallymuch more value in a quick cross-licensing deal.

The analyst contacts Intel to explain that Intel should be cautious incross licensing transactions given its huge portfolio of patents (andespecially when the cross licensee has a significantly smaller patentportfolio) and before doing so, Intel as the predominant cross-licensorshould be aware that there is a better way to go about this decisionprocess. To make the point, the analyst uses the now consummatedtransaction as an example by creating three patent portfoliosconstituting a thicket for analysis as follows:

Portfolio “A” Patents assigned to Intel Corporation (more than 17,000patents); and

Portfolio “B Patents assigned to Rambus Inc (approximately 700 patents)Portfolio “C” is identical to Portfolio “A.”

As a first case, the analyst ‘maps’ portfolio “A” on to “C” via “B” attwo degrees of separation and the results of the exercise are presentedas FIG. 26. The analyst finds 742 patents are presented through 3,000paths with 296 patents being connected as intermediates to the end pointpatents and at the same time including a path through a patent assignedto Rambus Inc.

As a second case, using the same data sets as in the first case of thisexample, the analyst maps portfolio “B” on to “B” via “A” at two degreesof separation and the results of the exercise are presented as FIG. 26.The analyst finds 608 patents are presented through 2,760 paths but,this time with only 23 patents being connected as intermediates to theend point patents and at the same time including a path through a patentassigned to Intel Corp. Moreover, as shown in FIG. 27, there appear tobe an unexpected set of small worlds of patent connections, whichtogether with the data of the first case of this example may indicatethat there was more for Rambus to gain than Intel in the broadcross-licensing arrangement. In any event, a relatively small numbers ofpatents was discovered and could be easily reviewed by Intel'sIntellectual Property professionals to make a reasoned judgment as tothe action to take.

The analyst explains to Intel that in the future it may be wiser forIntel to explore the interconnections of the patents of its thicket andthe thickets of others before launching headlong into a broadcross-license.

EXAMPLE 20 The Exploration of the Relationships Between one or morePatent Thickets Owned or Controlled by a First Entity such that theRelationships Between such Patents Traverse the Patent Thickets Owned orControlled by one or more other Entities for the Purpose of Determiningthe Potential Feasibility of such First Entity's Either Commencing,Defending or Avoiding a Patent Dispute in Order to Facilitate theEntering into of a Patent License or Defense with such other EntityRelating to such Patents

Although the two cases presented in this example concern business modelsthat are in practical terms diametrically opposed in commercial purpose(i.e., one company may be labeled a so-called “patent troll” and theother company may be labeled as a “patent troll-buster”), they are bothnonetheless and somewhat surprisingly subject to analysis by similarmethodology by application of the methods of the present invention. Ineach case, the process is two-fold: Construct identical portfolios ofpatents Portfolio “A” and Portfolio “C” each comprising the patentsassigned to one entity and then explore the relationships betweenPortfolios “A” and “C” at a DIRECTED (i.e., a constant chronologicalcitation chain) distance of two degrees of separation to obtain a firstapproximation list of intermediary patents assigned to one or more otherentities, such obtained patents being then used to construct a Portfolio“B”; and then Explore the relationships between Portfolios “A” and “C”that also traverse the aforesaid Portfolio “B” at an UNDIRECTED (i.e.,ignoring constancy of the chronology of citation chain) distance of atleast two degrees of separation to obtain a list of potential newclients, where the degree of separation chosen will depend upon thescope and extent of the results desired by the client.

Case I. ACACIA PATENT HOLDINGS CORPORATION (non-practicing entity)

An analyst has recently been hired by a noted patent investment company,Acacia Patent Holdings Corporation (sometimes referred to as a“non-practicing entity” or a “patent troll” since they derive theirrevenues from the exploitation of patents that they have acquired forthe sole purpose of charging licensing fees to others as a result ofsuccessful litigation or sometimes only the threat thereof), inconnection with exploring the universe of patents for potential patentlicensing revenue opportunities. Specifically, as a further example ofthe method of the present invention the analyst is furnished with a setof approximately 100 of the totality of patents that have been assignedto Acacia.

The analyst constructs two patent portfolios as follows:

Portfolio “A”—The approximately One Hundred Acacia Patents under study;and

Portfolio “C”—is identical to Portfolio “A.”

The analyst then uses the method of the present invention as described,supra., to expose the relationships between Portfolios “A” and “C” at aDIRECTED distance of two degrees of separation and thereby to obtain afirst approximation list of intermediary patents assigned to one or moreother entities. This exercise results in the discovery of 88 pathsbetween the Portfolios “A” and “C” comprising a totality of 38 patentsof which 19 are intermediary, with the graphical representation of theresults is shown in FIG. 28.

The analyst explains to Acacia that as a first approximation of thetotality of the patents of interest that this set of nineteen patentsshould be examined in detail. The expansion of the exploration tofurther degrees of separation can be easily accomplished thereafter asdesired.

The Analyst then uses this list of nineteen intermediary patents toconstruct a new portfolio, Portfolio “B”. Although these intermediarypatents may be of interest to Acacia, as a first approximation, theanalyst further employs the method of the present invention at anUNDIRECTED distance of THREE degrees of separation to obtain a moreextensive list of potential Acacia clients by operating on the threeportfolios as follows:

Portfolio “A”—The One Hundred Acacia Patents under study;

Portfolio “B”—The 19 Intermediate Patents discovered; and

Portfolio “C”—is identical to Portfolio “A.”

This exercise results in the discovery of 1,962 paths between thePortfolios “A” and “C” comprising a totality of 308 patents of which 296are intermediary. The results are quite extensive so in order tosimplify the review process, the analysis is also done at a DIRECTEDdistance of THREE degrees it results in the discovery of 50 pathsbetween the such Portfolios “A” and “C” comprising a totality of 22patents of which 14 are intermediary, with the graphical representationof the results is shown in FIG. 29. The analyst prepares both lists forreview by Acacia's professional staff.

Case II—RPX CORPORATION (troll defense)

The same analyst has recently been hired by another noted patentinvestment company, RPX Corporation (see http://www.rpxcorp.com) acompany whose purpose is to defend against the efforts of othercompanies such as the aforesaid “non-practicing entities” or “patenttrolls” and to protect against the efforts of such other companies asthey attempt to extract monies from RPX's customers.

At the same time, since RPX is always seeking out new clients to offer“protection” to, the analyst was hired by RPX in connection withexploring the universe of patents for potential revenue opportunities inoffering RPX's patent litigation risk management services.

Using a set of approximately two hundred patents assigned to RPX (eventhough the number of patents that RPX has rights to, by virtue of itsagreements with its clients, likely far exceeds this number), theanalyst constructs a test case using two portfolios as follows:

Portfolio “A”—The RPX Patents under study; and

Portfolio “C”—is identical to Portfolio “A.”

The analyst then uses the method of the present invention as described,supra., to expose the relationships between Portfolios “A” and “C” at aDIRECTED distance of two degrees of separation and thereby to obtain afirst approximation list of intermediary patents assigned to one or moreother entities. This exercise results in the discovery of 1,010 pathsbetween the Portfolios “A” and “C” comprising a totality of 143 patentsof which 61 are intermediary a significant although manageable quantity.

The analyst explains to RPX that as a first approximation of thetotality of the patents of interest that this set of sixty-one patentsshould be examined. Although the expansion of the exploration to furtherdegrees of separation can be easily accomplished thereafter as desired,RPX decides to first examine the sixty-one patents found in detail thento expand the search, as desired.

The analyst while reviewing these patents with RPX, notes and mentionsto RPX that a non-client of RPX, Digimarc Corporation, the holder ofhundreds of patents, is one of the companies listed as assignee of someof the sixty-one patents identified in the pre-screening stage. Theanalyst also recalls a recent, Jul. 7, 2009, news item about Digimarcthat it was commencing an active process to license its approximatelyone thousand patents (seehttp://www.thedealcom/corporatedealmaker/2009/07/digimarc_rides_patents_and_par.php.Thus, RPX commissions the analyst to examine the synergies or conflictsbetween the patent portfolios of Digimarc and RPX, using the methods ofthe present invention, by operating on three portfolios as follows:

Portfolio “A”—The RPX Patents under study;

Portfolio “B”—The Patents assigned to Digimarc Corporation; and

Portfolio “C”—Identical to Portfolio “A”,

at an UNDIRECTED distance of two degrees of separation from a patent inPortfolio “A”, to a patent in Portfolio “B”, and traverse theportfolios, with one or more patents in Portfolio “C”, and obtain a listof intermediary patents assigned to one or more other entities. Thisexercise results in the discovery of 352 paths between the Portfolios“A” and “C” comprising a totality of 87 patents of which 64 are assignedto Digimarc as an intermediary. This is a surprisingly high number ofpatents, which results are also shown in FIG. 30. The analyst compilesthe list of intermediaries, and visiting the USPTO website is able toobtain copies thereof for furnishing to the client, RPX.

The foregoing is considered as illustrative only of the principles ofthe invention. Furthermore, since numerous modifications and changeswill readily occur to those skilled in the art, it is not desired tolimit the invention to the exact construction and operation shown anddescribed. While the preferred embodiment has been described, thedetails may be changed without departing from the invention, which isdefined by the claims.

1. A computerized method comprising a selection of a set of databases,for determining interrelationships between a plurality of alphanumericdata, within or from a plurality of fields of alphanumeric data, storedwithin said databases, said database are selected from a plurality ofpieces of alphanumeric data within a plurality of alphanumeric datafields, and a instruction set of a plurality of computer commands aresent, to a computer to extract at least a plurality ofinterrelationships between a plurality pieces of alphanumeric data, andsaid relationships, are presented in a graphical illustration or adesign, at various degrees of separation.
 2. A computerized methodcomprising an instruction set sent to a computer to determine a set ofinterrelationships between a set of alphanumeric data within a set offields of alphanumeric data, a plurality of said alphanumeric datastored in a database, said database comprising a plurality of patentinformation, said instruction containing a set of commands to select aplurality of pieces of alphanumeric data within a plurality ofalphanumeric data fields, and instructing a computer to extract aplurality of interrelationships between a plurality selected pieces ofalphanumeric data to present said alphanumeric data in a graphicalillustration representing a set of various degrees of separation of saidselected alphanumeric data.
 3. The computerized method of claim 3wherein said data fields are such as are found on a published databaseof a Patent Office.
 4. The method of claim 3 wherein theinterrelationships between the two selected pieces of data are withinidentical data fields.
 5. The method of claim 3 wherein theinterrelationships between the two selected pieces of data are withindifferent data fields.
 6. The method of claim 3 wherein the degrees ofseparation are determined by varying the number of generations ofselected pieces of data.
 7. The method of claim 6 wherein a first datageneration is selected to determine a first degree of separation.
 8. Themethod of claim 6 wherein a second data generation is selected todetermine a second degree of separation.
 9. The method of claim 6wherein a third generation is selected to determine a third degree ofseparation, and so on.
 10. The method of claim 6 wherein thedetermination of degrees of separation based on preselected criteria,are not time dependent, traveling backward or forward of the date ofpatent filing, issuance, and/or publication.